WHEN GENIUS FAILED

THE RISE AND FALL OF LONG-TERM CAPITAL MANAGEMENT

With a lucid style and a sense of humor and amusement, Lowenstein guides us through the thickets of high finance in the...

An entertaining and informative history of Long-Term Capital Management (LTCM), the hedge fund whose 1998 collapse rattled the financial markets.

Lowenstein (Buffett, 1995) begins with a portrait of John Meriwether, the man who would be head of LTCM. Chicago-born, trained in mathematics and business at Northwestern and the University of Chicago, Meriwether joined Salomon Brothers in 1974. At 30, he formed the Arbitrage Group there in 1977. The author credits Meriwether with bringing the academic nerd to Wall Street, hiring Eric Rosenfeld, Gregory Hawkins, and Lawrence Hilibrand (all MIT wunderkinder) at precisely the moment that computer research was transforming the bond market. In 1993 Meriwether created LTCM and took his crew to Greenwich, Connecticut—and for four years the fund shone. Staffers and outsiders complained that the partners were condescending and secretive, but the huge profits kept everyone happy. In 1997 Myron Scholes and Paul Merton, LTCM’s star academics, won the Nobel Prize in Economics. Lowenstein excels at explaining esoteric financial topics; he clarifies the nature of hedge funds and coherently describes the general strategies and specific types of trades in arbitrage. With access to the partners’ confidential memoranda, he is also able to document LTCM’s swift fall with exceptional clarity and insight. On August 17, 1998, the fund had capital of $3.6 billion—but in another five weeks it was mostly gone. In a dizzying succession of events, Russia declared a moratorium on its debt, Brazilian and Mexican bonds weakened, and the Asian markets declined. All of LTCM’s trades went bad, to a degree that no one had been prepared for. (Whereas the wizards’ mathematical model calculated that a loss of more than $35 million in one day was unlikely, the fund lost $553 million on August 21, 1998, alone.) The story ends with drama and comedy: the 14-bank bailout group bickered and backstabbed, but it saved the day—and by December 1999 Meriwether and his old crew were back in business with a fresh $250 million and a new name.

With a lucid style and a sense of humor and amusement, Lowenstein guides us through the thickets of high finance in the computer age.

Pub Date: Sept. 15, 2000

ISBN: 0-375-50137-X

Page Count: 288

Publisher: Random House

Review Posted Online: May 19, 2010

Kirkus Reviews Issue: Aug. 1, 2000

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Absolutely enthralling. Read it.

Awards & Accolades

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Our Verdict

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  • Kirkus Reviews'
    Best Books Of 2019


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A young Irish couple gets together, splits up, gets together, splits up—sorry, can't tell you how it ends!

Irish writer Rooney has made a trans-Atlantic splash since publishing her first novel, Conversations With Friends, in 2017. Her second has already won the Costa Novel Award, among other honors, since it was published in Ireland and Britain last year. In outline it's a simple story, but Rooney tells it with bravura intelligence, wit, and delicacy. Connell Waldron and Marianne Sheridan are classmates in the small Irish town of Carricklea, where his mother works for her family as a cleaner. It's 2011, after the financial crisis, which hovers around the edges of the book like a ghost. Connell is popular in school, good at soccer, and nice; Marianne is strange and friendless. They're the smartest kids in their class, and they forge an intimacy when Connell picks his mother up from Marianne's house. Soon they're having sex, but Connell doesn't want anyone to know and Marianne doesn't mind; either she really doesn't care, or it's all she thinks she deserves. Or both. Though one time when she's forced into a social situation with some of their classmates, she briefly fantasizes about what would happen if she revealed their connection: "How much terrifying and bewildering status would accrue to her in this one moment, how destabilising it would be, how destructive." When they both move to Dublin for Trinity College, their positions are swapped: Marianne now seems electric and in-demand while Connell feels adrift in this unfamiliar environment. Rooney's genius lies in her ability to track her characters' subtle shifts in power, both within themselves and in relation to each other, and the ways they do and don't know each other; they both feel most like themselves when they're together, but they still have disastrous failures of communication. "Sorry about last night," Marianne says to Connell in February 2012. Then Rooney elaborates: "She tries to pronounce this in a way that communicates several things: apology, painful embarrassment, some additional pained embarrassment that serves to ironise and dilute the painful kind, a sense that she knows she will be forgiven or is already, a desire not to 'make a big deal.' " Then: "Forget about it, he says." Rooney precisely articulates everything that's going on below the surface; there's humor and insight here as well as the pleasure of getting to know two prickly, complicated people as they try to figure out who they are and who they want to become.

Absolutely enthralling. Read it.

Pub Date: April 16, 2019

ISBN: 978-1-984-82217-8

Page Count: 288

Publisher: Hogarth

Review Posted Online: Feb. 17, 2019

Kirkus Reviews Issue: March 1, 2019

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HOUSE OF LEAVES

The story's very ambiguity steadily feeds its mysteriousness and power, and Danielewski's mastery of postmodernist and...

An amazingly intricate and ambitious first novel - ten years in the making - that puts an engrossing new spin on the traditional haunted-house tale.

Texts within texts, preceded by intriguing introductory material and followed by 150 pages of appendices and related "documents" and photographs, tell the story of a mysterious old house in a Virginia suburb inhabited by esteemed photographer-filmmaker Will Navidson, his companion Karen Green (an ex-fashion model), and their young children Daisy and Chad.  The record of their experiences therein is preserved in Will's film The Davidson Record - which is the subject of an unpublished manuscript left behind by a (possibly insane) old man, Frank Zampano - which falls into the possession of Johnny Truant, a drifter who has survived an abusive childhood and the perverse possessiveness of his mad mother (who is institutionalized).  As Johnny reads Zampano's manuscript, he adds his own (autobiographical) annotations to the scholarly ones that already adorn and clutter the text (a trick perhaps influenced by David Foster Wallace's Infinite Jest) - and begins experiencing panic attacks and episodes of disorientation that echo with ominous precision the content of Davidson's film (their house's interior proves, "impossibly," to be larger than its exterior; previously unnoticed doors and corridors extend inward inexplicably, and swallow up or traumatize all who dare to "explore" their recesses).  Danielewski skillfully manipulates the reader's expectations and fears, employing ingeniously skewed typography, and throwing out hints that the house's apparent malevolence may be related to the history of the Jamestown colony, or to Davidson's Pulitzer Prize-winning photograph of a dying Vietnamese child stalked by a waiting vulture.  Or, as "some critics [have suggested,] the house's mutations reflect the psychology of anyone who enters it."

The story's very ambiguity steadily feeds its mysteriousness and power, and Danielewski's mastery of postmodernist and cinema-derived rhetoric up the ante continuously, and stunningly.  One of the most impressive excursions into the supernatural in many a year.

Pub Date: March 6, 2000

ISBN: 0-375-70376-4

Page Count: 704

Publisher: Pantheon

Review Posted Online: May 19, 2010

Kirkus Reviews Issue: Feb. 1, 2000

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