Long Term Capital Management is widely recognized as one of largest disasters ever to hit the global financial system. A hedge fund founded by senior members of Salomon Brothers, LTCM came in to existence in 1994 and for four years delivered exceptional returns to its investors. Then, in 1998, the fund lost $4.8 billion when its bets started going sour following the Russian crisis.
Eric Rosenfeld was a trader at LTCM, and he recently spoke to students at MIT about his experience at LTCM. In this candid perspective Rosenfeld attempts to explain the facts of the LTCM collapse. Here is the link to the interview.
