When Genius Failed¶
Lowenstein, R. (2000). When Genius Failed: The Rise and Fall of Long-Term Capital Management. Random House.
Cited by¶
3 citations across 3 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Arbitrage (Finance)
- Liquidity
- A vivid pedagogical anchor is the Long-Term Capital Management collapse, narrated in Lowenstein's (2000) When Genius Failed: a hedge fund whose models assumed continuous liquidity built leveraged convergence trades that became impossible to unwind once cross-asset spreads widened in 1998, demonstrating concretely that even sophisticated arbitrage strategies depend on liquidity assumptions that can fail abruptly.
Borderline supportVerified against the work's full text
Confirms the book narrates LTCM's rise and fall and the failure of its models and good trades, but the held page never states the continuous-liquidity or spread-widening mechanism.
“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.”
Two runs of the same check disagreed on this citation; the later verdict is shown and the citation is queued for review.
- A vivid pedagogical anchor is the Long-Term Capital Management collapse, narrated in Lowenstein's (2000) When Genius Failed: a hedge fund whose models assumed continuous liquidity built leveraged convergence trades that became impossible to unwind once cross-asset spreads widened in 1998, demonstrating concretely that even sophisticated arbitrage strategies depend on liquidity assumptions that can fail abruptly.
- Outlier Leverage
- In finance, a single trader, fund, or position can dominate firm-level performance or risk — one trader collapsed Barings, a handful of trades concentrated the largest losses at LTCM, and long-tail returns make hedge-fund alpha dominated by a few vintages.
This sourceDocuments how a handful of concentrated positions drove LTCM's losses; standard popular reference for single-actor/single-position dominance of firm-level risk (the Barings/Leeson collapse is cited as a parallel case, not documented in this source).
- In finance, a single trader, fund, or position can dominate firm-level performance or risk — one trader collapsed Barings, a handful of trades concentrated the largest losses at LTCM, and long-tail returns make hedge-fund alpha dominated by a few vintages.
Verification¶
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