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When Genius Failed | Roger Lowenstein

When Genius Failed | Roger Lowenstein

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When Genius Failed: The Rise and Fall of Long-Term Capital Management

ISBN-13 9780375758256
ISBN-10 0375758259
Author Roger Lowenstein
Format Trade Paperback
Publisher Random House Trade Paperbacks
Publication Date October 09, 2001
Page Count 304
Subjects Corporate Finance, Investments & Securities, Risk Management

Extended Synopsis

In this business classic, Roger Lowenstein provides a definitive account of the rise and fall of Long-Term Capital Management (LTCM). Founded in 1993, LTCM was initially hailed as the most impressive hedge fund in history. For four years, the firm functioned as a $100 billion juggernaut, dazzling Wall Street with its sophisticated mathematical models and the expertise of its elite partners. However, the firm eventually suffered catastrophic losses that threatened not only the largest banks on Wall Street but the stability of the global financial system itself.

Drawing on confidential internal memos and extensive interviews with key players, Lowenstein explores the intersection of hubris, mathematical certainty, and corporate culture. He illustrates how the collapse of LTCM served as a chilling harbinger for the 2008 financial crisis. With a new Afterword, this edition underscores how the implosion of LTCM should be viewed not as an isolated drama, but as a critical template for market meltdowns in an age of financial instability.

Reader Targeting

  • Financial professionals, risk managers, and students of economics studying market crises and systemic risk.
  • Investors seeking a deeper understanding of the relationship between mathematical modeling, hubris, and financial stability.
  • Readers of investigative business journalism interested in the history of Wall Street hedge funds.

About the Author

Roger Lowenstein is a distinguished financial journalist and author. His works are highly regarded for their ability to synthesize complex market events into compelling, narrative-driven accounts of financial history.

Accolades & Awards

Named one of the "Best Books of the Year" by BusinessWeek, the work has been praised by The New York Times as "a riveting account that reaches beyond the market landscape," and by The Economist as "story-telling journalism at its best."


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