The Global Guru

The Global Guru

The Difference Between Being Right and Staying Alive

Aug 03, 2026
∙ Paid

In September 1998, the smartest men on Wall Street ran out of money.

Long-Term Capital Management had two Nobel laureates on its masthead, a trading model that had worked for four straight years, and a thesis about bond spreads that was, in the long run, entirely correct. None of it mattered. The fund had borrowed so heavily that when the market moved ag…

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