📈 SigmaTrader Blog

In the high-stakes world of Wall Street, few stories are as dramatic—and educational—as the fall of Long-Term Capital Management (LTCM) . When Genius Failed by Roger Lowenstein is not just a finance book—it’s a powerful warning about arrogance, risk, and the illusion of control. Let’s break down what happened, who was involved, and what every investor can learn. 📚 Summary of "When Genius Failed" When Genius Failed chronicles the rise and catastrophic fall of Long-Term Capital Management (LTCM) , a hedge fund that dazzled Wall Street in the 1990s. LTCM was founded by some of the most brilliant financial minds: John Meriwether – Former vice chairman and head of bond trading at Salomon Brothers, known for pioneering arbitrage trading. Myron Scholes – Nobel Prize-winning economist, co-creator of the Black-Scholes option pricing model. Robert C. Merton – Nobel Prize-winning economist, specialized in risk and financial derivatives. Other partners included t...