This episode examines the activities of several prominent hedge funds in the 1990s and early 2000s. The narrative focuses on their investments in emerging markets, including successful trades in the Thai baht and sterling, and their involvement in the Asian financial crisis. The text also details their experiences in Russia, including a significant investment in Svyazinvest and the subsequent Russian financial crisis. Finally, it analyzes the rise and fall of Long-Term Capital Management, highlighting their sophisticated risk models and ultimate failure, and contrasts their strategies with those of other prominent hedge funds.