Long-Term Capital Management LP said partners Myron Scholes and William Krasker are leaving the hedge fund, which was taken over by its lenders in September after losing more than $4 billion.

Mr. Scholes, 57, a 1997 Nobel laureate in economics, will move to San Francisco, where his wife works, and will lecture occasionally at Stanford University. Mr. Krasker, 46, a former Salomon Brothers Inc. trader, will consult for Long-Term Capital.

They were among the traders who were expected to leave because the firm cannot support all of its partners. The banks that control the fund are paying partners $250,000 a year plus 15% of any profit they make. The incentive fee amounted to about $50 million last year.

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