[Skip to content]

Sign up for our daily newsletter
The Actuary The magazine of the Institute & Faculty of Actuaries

When genius failed (Long-Term Capital Management)

A classic tale of the operational risk of the dominant/arrogant management who start as wacky entrepreneurs who have discovered the permanently gold-laying goose, gain the odd Nobel prize along the way, and know exactly how their capital is at risk as it disappears down the plug, and all because of an assumption that volatility is uniform; well, isn’t it?

See ‘When genius failed...’ by Shauna Ferris in the September 2002 issue of The Actuary


To purchase this book, click on the cover image