In March 2006, the world’s richest men sipped champagne in an opulent New York hotel. They were preparing to compete in a poker tournament with million-dollar stakes. At the card table that night was Peter Muller, who managed a fabulously successful hedge fund called PDT. With him was Ken Griffin, who was the tough-as-nails head of Citadel Investment Group. There, too, were Cliff Asness, the sharp-tongued, mercurial founder of the hedge fund AQR Capital Management, and Boaz Weinstein, chess “life master” and king of the credit-default swap. Muller, Griffin, Asness, and Weinstein were among the best and brightest of a new breed, the quants. Over the past twenty years, this species of math whiz had usurped the testosterone-fueled, kill-or-be-killed risk takers who’d long been the alpha males of the world’s largest casino. The quants believed that a cocktail of differential calculus, quantum physics, and advanced geometry held the key to reaping riches from the financial markets. And they helped create a digitized money-trading machine that could shift billions around the globe with the click of a mouse. Few realized that night, though, that in creating this extraordinary system, men like Muller, Griffin, Asness, and Weinstein had sown the seeds for history’s greatest financial disaster.
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"Peterson's perspective combines a compelling narrative of recent financial events while telling a history of contributions of some really amazing intellectuals (Thorpe, Mandelbrot, et. al,). In a way, the main subjects of the book, hedge funds and the people who ran them, can be summed up by a quote Peterson passes on from Paul Wilmott, "Banks and hedge funds employ mathematicians with no financial-market experience to build models that no one is testing scientifically for use in situations where they were not intended by traders who don't understand them.""
— Keith (4 out of 5 stars)
" good read....detailed background on how/when/where the financial industry became driven by quantitative mathmatics. an interesting read....did turn my stomach to realize full-on how wallstreet is a gambling apparatus, with large amounts of investments managed with no regard to company fundamentals at all. "
— Dan, 2/10/2014" It was an interesting read but I didn't understand half of it. For the non-stock trading people of the world it went over my head in some parts but it was still a good read. "
— Ryan, 2/8/2014" Same disappointment as in What Would Google Do - - - very intrusive profanity. "
— Denise, 2/6/2014" Not as good as Dark Pools, but still very interesting. I feel like I learned more about the personalities involved in the financial world, but not very much about the mechanics of the instruments and the math. "
— Melanie, 2/1/2014" It's an interesting read if you are into the stock market and finance. It sheds some light on how the rich get richer. "
— Dan, 1/19/2014" Wildly fascinating and scary. A bit scattered and detailed with personal info but otherwise provides a solid "birds eye view" on the meltdown "
— Brad, 1/16/2014" An informative book on wall street and 2008 meltdown..... "
— Vaseem, 1/2/2014" Back to the algorithems; no less arrogance. "
— Robert, 12/6/2013" Fun read. Agree that image of "quant" is somewhat inflated in the book. Maybe it should be called The Magicians. "
— Philip, 12/1/2013" entertaining enough for fast and pleasant read on the history of hedge fund, while detailing ivy league backgrounds for those "whiz" does help to distract my attention from the storyline. Poker game math = finance modeling math? give me a break. "
— V, 9/24/2013" An interesting listen since I learned things about the way the pros speculate in stocks and securities, and how the current financial crisis was created. "
— Elisabeth, 9/19/2013" Great book behind great mathematical geniuses that took over Wall Street. "
— Trever, 9/17/2013" Most accounts of the financial crisis are focused on the CEOs and the big picture. None that I've read have discussed the impact of technical trading and this one was really enlightening as to the role they played. It wasn't all about sub-prime mortgages as I'd always assumed. "
— Garth, 1/19/2013" Only good if you like to read about the boring lives of economists and their theories. I love math, but this was too difficult. I didn't even finish it. "
— Kelly, 12/29/2012" A thorough examination of the evolution of unemotional, mathematically based investing. The book does a great job of going over the basics of capital markets and their evolution, but the characters, rich nerds, all a bit eccentric in their own ways, fall a bit flat. "
— Ethan, 8/8/2012" i learned quite a bit from this book. "
— Mary, 11/23/2011" If you want to know how stocks are controlled by mathematicians and statisticians, read this. You need to posses some basic knowledge about how the market operates. A good read. "
— Ajitabh, 9/14/2011" Nice, easy read on a few selected wallstreet quants from the begining of their carriers to the crisis of 2008. The book would have benefited from a deeper look on the strategies that they use, but I liked it anyway. "
— Jonas, 8/6/2011" Took me a while - as a non financial person - but was both informative and scary! "
— Anne, 6/25/2011" Interesting insider views as to what was going on during the quant revolution on Wall Street. I wish that it was more in depth but an interesting overview, nonetheless "
— Michael, 5/22/2011" Good companion to The Big Short by Michael Lewis. Goes into detail about how a small group of investors created products that they convinced themselves could never fail, and how their implosion nearly took down the entire financial system. "
— Dwight, 4/19/2011" Maybe I'm being overly simplistic but if you could assign a value to (or quantify) risk with any degree of certainty it really would be "risk" any more ... "
— Nate, 4/17/2011" Wildly fascinating and scary. A bit scattered and detailed with personal info but otherwise provides a solid "birds eye view" on the meltdown "
— Brad, 3/30/2011" Provides a good profile of the people it covers and also some of their work. I only wish it wasn't as long winded as it is. "
— Aditya, 3/22/2011" First half I liked. Second half reads like a hodgepodge of newspaper clippings. No crescendo, or aha moments here. "
— Nothanks, 3/2/2011" Pretty cool read on how a bunch of mathematicians and CS geeks dominated (and potentially wrecked) international finance. "
— Andy, 2/27/2011" Great insight into what caused the 2007 Wall Street crash which in turn caused world crisis. "
— Lukasz, 1/27/2011" Good overview of mathematical formula trading via high speed computer. Read it and begin to understand what went wrong in with the economy in 2008. "
— Donna, 1/24/2011Mike Chamberlain is an actor and voice-over performer in Los Angeles whose audiobook narration has won several AudioFile Earphones Awards. His voice credits range from radio commercials and television narration to animation and video game characters. Stage trained at Boston College, he has performed works from Shakespeare and the classics to contemporary drama and comedy.