When Genius Failed is the story of Long Term Capital Management (LTCM), its beginnings, rise to fame and success and steep decline to a footnote in financial history. The book reads similar to a Michael Lewis offering, perhaps attributable to the Solomon Brothers involvement. Super smart people and those always fascinate me than ran LTCM were just that. The story of their beginning as arbitrage traders, disenfranchisement with their current firm, and subsequent mass departure to form an incredible braintrust was simply fascinating. Equally fascinating was how time, money and success affected their thinking, resulting in strategic decisions directly counter to the firm's initial objectives and LTCM's eventual death. It serves as a case-study on many topics, from hedge-fund creation and management and financial execution at the highest levels to behavioral economics and the clouding effects of success. When Genius Failed is a quick read and recommended.
No comments:
Post a Comment