When Genius Failed

The Rise and Fall of Long-Term Capital Management

by

Subject categories
ISBNs
  • 0375506446
  • 9780375503177
  • 9780375506444
“A riveting account that reaches beyond the market landscape to say something universal about risk and triumph, about hubris and failure.”—The New York Times

NAMED ONE OF THE BEST BOOKS OF THE YEAR BY BUSINESSWEEK

In this business classic—now with a new Afterword in which the author draws parallels to the recent financial crisis—Roger Lowenstein captures the gripping roller-coaster ride of Long-Term Capital Management. Drawing on confidential internal memos and interviews with dozens of key players, 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.

When it was founded in 1993, Long-Term was hailed as the most impressive hedge fund in history. But after four years in which the firm dazzled Wall Street as a $100 billion moneymaking juggernaut, it suddenly suffered catastrophic losses that jeopardized not only the biggest banks on Wall Street but the stability of the financial system itself. The dramatic story of Long-Term’s fall is now a chilling harbinger of the crisis that would strike all of Wall Street, from Lehman Brothers to AIG, a decade later. In his new Afterword, Lowenstein shows that LTCM’s implosion should be seen not as a one-off drama but as a template for market meltdowns in an age of instability—and as a wake-up call that Wall Street and government alike tragically ignored.

Praise for When Genius Failed

“[Roger] Lowenstein has written a squalid and fascinating tale of world-class greed and, above all, hubris.”—BusinessWeek

“Compelling . . . The fund was long cloaked in secrecy, making the story of its rise . . . and its ultimate destruction that much more fascinating.”The Washington Post

“Story-telling journalism at its best.”The Economist
  • Random House Publishing Group; January 2001
  • ISBN 9780375506444
  • Read online, or download in secure EPUB format
  • Title: When Genius Failed
  • Author: Roger Lowenstein
  • Imprint: Random House
Subject categories
ISBNs
  • 0375506446
  • 9780375503177
  • 9780375506444

In The Press

Praise for Roger Lowenstein's national bestseller Buffett: The Making of an American Capitalist

"A delightful portrait . . . Mr. Lowenstein has done a masterly job."
-- The New York Times Book Review

"A significant contribution to the craft of biography as well as an illuminating and comforting story for investors everywhere."
-- Chicago Tribune

"The singular achievement of Lowenstein's excellent biography... is that it burnishes the Buffett myth while deconstructing it with heavy doses of reality."
-- Barron's

"Lively, smoothly written, and elaborately researched, Buffett is likely to stand as the definitive biography."
-- Business Week

"Thoroughly researched and perceptive . . . a highly readable account."
-- Financial Times

"Lowenstein has accomplished something remarkable."
-- Los Angeles Times

About The Author

Roger Lowenstein, author of the bestselling Buffett: The Making of an American Capitalist, reported for The Wall Street Journal for more than a decade, and wrote the Journal's stock market column "Heard on the Street" from 1989 to 1991 and the "Intrinsic Value" column from 1995 to 1997. He now writes a column in Smart Money magazine, and has written for The New York Times and The New Republic, among other publications. He has three children and lives in Westfield, New Jersey.

Subject categories
ISBNs
  • 0375506446
  • 9780375503177
  • 9780375506444