Bettor - The Rise and Fall of Long-Term Capital Management (LTCM)

Author: Roger Lowenstein
Publisher:
Publish Date: 2006-07-01
Features: In the mid-1990s, Long-Term Capital Management (LTCM), a dazzlingly successful hedge fund on Wall Street, achieved an unbelievable 285% return in just four years, creating a legend on the street. However, under the excessive manipulation of its brilliant traders, the fund lost $4.5 billion in just two months and fell into ruin. This is a follow-up masterpiece by the author of the bestseller Buffett: The Making of an American Capitalist, which introduces this historical transformation on Wall Street. Together, two Nobel laureates in economics, a former Vice Chairman of the Federal Reserve, and one of Wall Street's most successful arbitrage traders bring to life one of the most gripping and tragic stories in financial market history. Long-Term Capital Management (LTCM), a fund management company that survived for only five years, was the most influential arbitrage fund to date; once a celebrated star on Wall Street, it ultimately triggered a disaster in the history of the street; a group of speculators who once treated the uncertain world as a cold-blooded gamble, but ultimately lost everything; and a vivid case study in the history of capital markets that is enough to make investors, fund managers, and regulators pause for thought.