Vishal Kumar

26%
Flag icon
LTCM had relied on complex hedging strategies, massive hairballs of derivatives, and risk management tools such as VAR to allow it to leverage up to the maximum amount possible. By carefully hedging its holdings, LTCM could reduce its capital, otherwise known as equity. That freed up cash to make other bets.
The Quants: The maths geniuses who brought down Wall Street
Rate this book
Clear rating