When Genius Failed: The Rise and Fall of Long-Term Capital Management

by Roger Lowenstein

This usage evolved from the notion of the common garden hedge as a boundary or limit and was used by Shakespeare (“England hedg’d in with the maine”³).

to neutralize the market factor by hedging—that is, by going both long and short.

Klarman warned, “Successful investors have positioned them-selves to avoid the 100-year flood.

markets have memories.

dubbed Value-at-Risk “a lighthouse for the soon-to-be-shipwrecked.”

“It’s a wrong perception to believe that you can eliminate risk just because you can measure it.”

long-term thinking is a luxury not always available to the highly leveraged;