Thursday, 2 October 2014
Last updated 1 hour ago
Oct 13 2008 | 1:31pm ET
On the day that New York Times columnist and Princeton University professor Paul Krugman was awarded the Nobel Prize in economics, one former hedge fund manager is calling for the revocation of another hedge fund pairs' prize.
Nassim Nicholas Taleb, the former owner of hedge fund Empirica and current risk engineering professor and best-selling author, told National Public Radio's Morning Edition that the current market turmoil proves that the stock-option valuation process that Robert Merton and Myron Scholes won a Nobel for in 1997 doesn't work. And he wants that prize revoked.
Merton and Scholes, of course, were the brains behind Long-Term Capital Management, whose collapse in 1998 was the largest-ever hedge fund failure at the time. According to Taleb, the risk management failures that torpedoed their old firm have now helped to torpedo Wall Street by leading investment companies to believe (wrongly) that they were insulated from risk.
Earlier this month on CBS' 60 Minutes, Taleb said the "use of probabilistic methods for the estimation of risks did just blow up the banking system."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...