The Hedge Fund That Almost Broke The World

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The Hedge Fund That Almost Broke The World

By Tyler Durden
Created 07/29/2017 – 20:30
by Tyler Durden [1]
Jul 29, 2017 8:30 PM
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Before the financial crisis and the billions of dollars in corporate bailouts, and trillions more in central bank quantitative easing, the world of investing was simpler.

Back then, markets moved in two directions, traders trusted their models, and hedge funds stacked with PhDs and top executives from well-respected bond trading houses were expected to make money hand over fist. And for three glorious years in the mid-1990s, Long Term Capital Management did exactly that. But when the fund suddenly imploded in 1998, stung by economic crises in Russia and Asia that caused it to lose $4 billion in a bizarre six-week stretch… Continue reading