When Genius Failed

The Rise and Fall of Long-Term Capital Management

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    • $15.99
    • $15.99

Publisher Description

“A riveting account that reaches beyond the market landscape to say something universal about risk and triumph, about hubris and failure.”—The New York Times

NAMED ONE OF THE BEST BOOKS OF THE YEAR BY BUSINESSWEEK

In this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, Lowenstein explains not just how the fund made and lost its money but also how the personalities of Long-Term’s partners, the arrogance of their mathematical certainties, and the culture of Wall Street itself contributed to both their rise and their fall.

When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Street as a $100 billion moneymaking juggernaut, it suddenly suffered catastrophic losses that jeopardized not only the biggest banks on Wall Street but the stability of the financial system itself. The dramatic story of Long-Term’s fall is now a chilling harbinger of the crisis that would strike all of Wall Street, from Lehman Brothers to AIG, a decade later. In his new Afterword, Lowenstein shows that LTCM’s implosion should be seen not as a one-off drama but as a template for market meltdowns in an age of instability—and as a wake-up call that Wall Street and government alike tragically ignored.

Praise for When Genius Failed

“[Roger] Lowenstein has written a squalid and fascinating tale of world-class greed and, above all, hubris.”—BusinessWeek

“Compelling . . . The fund was long cloaked in secrecy, making the story of its rise . . . and its ultimate destruction that much more fascinating.”The Washington Post

“Story-telling journalism at its best.”The Economist

GENRE
Business & Personal Finance
RELEASED
2000
September 12
LANGUAGE
EN
English
LENGTH
288
Pages
PUBLISHER
Random House Publishing Group
SELLER
Penguin Random House Canada
SIZE
1.3
MB

Customer Reviews

mondejoe ,

Fleeting success was a mirage in the desert

The problem with Long-Term Capital Management was that they thought the markets were like a mathematical problem that could be solved. They used leverage to amplify their gains and that leverage ultimately led to the firm’s collapse.

I wonder how many people read this great book by Roger Lowenstein back in the day. The fall of LTCM came with it lessons that Wall Street didn’t learn from which led to the future implosion of other hedge funds and family offices that ultimately cost banks dearly. Indeed a dose of leverage, greed and hubris is a combustible combination.

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