When Genius Failed: The Rise and Fall of Long-Term Capital Management
The definitive account of the greatest hedge fund failure of its time: Long-Term Capital Management. Lowenstein narrates how a team of geniuses — including two Nobel laureates — built mathematical models giving them near-infinite confidence in leveraged positions, and how in 1998 reality destroyed those models. A masterclass on the limits of rationality, systemic risk, and intellectual hubris.
