Long Term Capital Management is the name of a hedge fund that some today may have forgotten or not know about. The fund was founded in the early 1990's to capitalize on a new body of financial theory; a group of PhDs, Nobel prize winners, and seasoned Wall Street veterans joined together to exploit their mathematical models that were supposed to reap tremendous rewards with little risk. However their so-called arbitrage strategy of yield convergence failed when a series of 'long-tail' events derailed the strategy, lost the fund billions of dollars, and threatened to take down the financial system with it. Long Term Capital Management, or LTCM is frequently used as a case study in risk management for finance students. This documentary is a must see for anyone involved in financial markets as well as those curious about the world of finance and hedge funds.
For those who want to learn more, Roger Lowenstein wrote a very good book on LTCM, titled "When Genius Failed: The Rise and Fall of Long-Term Capital Management".
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Finance Documentaries: http://www.financedocumentaries.com/2011/06/trillion-dollar-bet.html