For instance, Long-Term Capital Management ignored Kurtosis risk to its detriment as this formerly very successful hedge fund had to be bailed out by major investment banks in the late 90s because it understated the Kurtosis of many financial securities underlying their own trading positions.
Long-Term Capital Management ignored Kurtosis risk to its detriment as this formerly very successful hedge. This was for instance. Fund had to be bailed out by major investment banks in the late 90s. It understated the Kurtosis of many financial securities. These many financial securities were underlying their own trading positions this formerly very successful hedge.