When Genius Failed by Roger Lowenstein recounts the dramatic rise and fall of Long-Term Capital Management (LTCM), a hedge fund launched in 1994 by Wall Street star John Meriwether and Nobel Prize–winning economists Myron Scholes and Robert Merton. Built on complex mathematical models and extreme leverage, LTCM initially generated massive profits, managing over $100 billion in assets. However, in 1998, unforeseen global events—especially the Russian debt default—shattered its strategies. The fund collapsed, forcing the Federal Reserve to coordinate a $3.6 billion bailout. The book serves as a cautionary tale about hubris, blind faith in models, and systemic risk in finance.

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