Besides risk management it teaches the value of experience and the concept of rising back from your fall. This book teaches how to be not blinded by present success blah blah blah. That is the entire essence about being careful and playing safe. Many people are drawn towards the stock markets (or success in general) without understanding that success now can be followed by failure. This Book was a very interesting reading all by itself. Knowingly or unknowingly, you start to pick up terms that you had never heard of. My way of getting the hang of things when I am *very* new in a field is to listen (or read) on topics related to that field. I did'nt want to read some dull boring book. I read this book with the aim of increasing my knowledge about the stock market and various terminologies etc. Informative and interesting, full of suspense He explains not just how the fund made and lost its money, but what it was about the personalities of Long-Term's partners, the arrogance of their mathematical certainties, and the late-90s culture of Wall Street that made it all possible. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein crafts a story that reads like a first-rate thriller from beginning to end.

At the eleventh hour, fearing that the financial system of the world was in peril, the Federal Reserve hastily summoned Wall Street's leading banks to underwrite a bailout.īest selling author Roger Lowenstein captures Long-Term's roller-coaster ride in gripping detail.

The firm's staggering $100 billion balance sheet threatened to drag down markets around the world. In five weeks, the professors went from mega-rich geniuses to discredited failures. Four years later, when a default in Russia set off a global storm that Long-Term's models hadn't anticipated, its supposedly safe portfolios imploded. Thanks to their cast - which included a pair of future Nobel Prize winners - investors believed them. truly believed that their finely tuned computer models had tamed the genie of risk, and would allow them to bet on the future with near mathematical certainty.

And so Long-Term Capital Management was born. In 1993, Meriwether gathered together his former disciples and a handful of supereconomists and proposed that they become partners in a new hedge fund different from any Wall Street had ever seen.

For two years, his fiercely loyal team - convinced that the chief had been unfairly victimized - plotted their boss' return. In 1991, in the wake of a scandal involving one of his traders, Meriwether abruptly resigned. John Meriwether, a famously successful Wall Street trader, spent the 1980s as a partner at Salomon Brothers, establishing the best - and the brainiest - bond arbitrage group in the world.

When genius failed book