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Two prominent partners at the now infamous Long-Term Capital Management L.P. will be reunited when Chi-Fu Huang joins Nobel laureate Myron Scholes at Oak Hill Capital Partners, the $6 billion private equity partnership affiliated with Texas investor Robert Bass.
Huang was recently hired as a quantitative researcher by Oak Hill, which along with Bass-affiliate Keystone Inc., has employed original LTCM partner Scholes as a consultant since April. A spokeswoman for Oak Hill declined to comment on Huang's hire, but other sources indicated that at least some of his research might focus on how to trade fixed-income instruments without relying on the enormous leverage that contributed to the downfall of LTCM.
"I don't think that those guys necessarily believe themselves to be the cause of...