The Bushido of Risk

Isaac de la Peña
Jul 6, 2019 · 4 min read

(Initially published May 10th 2015)

When commentators talk about the various causes of financial debacles like that of Long Term Capital Management (LTCM) in the 90s, they often mention on the one hand the mistakes they make by moving away from their core area of competence (in LTCM’s case that was the bond market, venturing into terrains of very different expertise such as merger arbitrage). But on the other hand they also…