Friday, 27 March 2015
Last updated 2 hours 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."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…