Founder connections
- Ben HorowitzGoodreads-attributed recommendationGoodreads News & Interviews includes this in its March 8, 2024 Horowitz leadership-book feature with a favorable assessment of the failure account. This is an editorial attribution; no signed endorsement, completed reading or reading edition is proved.Source
Summary
Roger Lowenstein recounts the rise and collapse of Long-Term Capital Management. Using internal memos and interviews with key participants, he examines the fund's partners, mathematical assumptions and expanding financial exposure. The account explains how large concentrated positions and heavy borrowing left the firm vulnerable when markets moved against it. It follows a company crisis with effects on the banks connected to the fund.
Why read it Our view
Use this financial-firm case to examine concentrated exposure, liquidity and borrowing that can threaten a company's survival. Lowenstein's account connects these choices with partner assumptions and the organization's response to losses.