When Genius Failed

This book explores the rise and fall of Long-Term Capital Management, a hedge fund founded by John Meriwether, which included two Nobel Prize winners among its team. Initially celebrated for its impressive returns, the fund attracted significant investments from banks and wealthy individuals. However, as competition increased, Meriwether altered strategies to maintain performance, ultimately leading to risky leverage. The story details the hubris of elite investors who believed they could consistently outperform the market and the catastrophic consequences of their overconfidence.