Gain an Insight into Man's Attempt to Manage Market Risk

Business Wire, April 17, 2007

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c54267) has announced the addition of "A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation" to their offering.

Why do markets keep crashing and why are financial crises greater than ever before?

As the risk manager to some of the leading firms on Wall Street - from Morgan Stanley to Salomon and Citigroup - and a member of some of the world's largest hedge funds, from Moore Capital to Ziff Brothers and FrontPoint Partners, Rick Bookstaber has seen the ghost inside the machine and vividly shows us a world that is even riskier than we think. The very things done to make markets safer, have, in fact, created a world that is far more dangerous. From the 1987 crash to Citigroup closing the Salomon Arb unit, from staggering losses at UBS to the demise of Long-Term Capital Management, Bookstaber gives readers a front row seat to the management decisions made by some of the most powerful financial figures in the world that led to catastrophe, and describes the impact of his own activities on markets and market crashes. Much of the innovation of the last 30 years has wreaked havoc on the markets and cost trillions of dollars.

A Demon of Our Own Design tells the story of man's attempt to manage market risk and what it has wrought. In the process of showing what we have done, Bookstaber shines a light on what the future holds for a world where capital and power have moved from Wall Street institutions to elite and highly leveraged hedge funds.

Richard Bookstaber, PhD (New York, NY) runs a hedge fund at FrontPoint Partners. Prior to this, he was Director of Risk Management at Moore Capital Management, one of the largest hedge funds in the world, and also served in that role at Ziff Brothers Investments. He served as Managing Director in charge of firm-wide risk management at Salomon Brothers and also served on that firm's powerful Risk Management Committee. Mr. Bookstaber spent 10 years at Morgan Stanley in quantitative research and as a proprietary trader, concluding his tenure there as Morgan Stanley's first market risk manager. He is the author of three books and scores of articles on finance topics ranging from options theory to risk management. Bookstaber received a PhD in economics from MIT.

About the Author:

Richard Bookstaber runs an equity hedge fund in Greenwich, Connecticut. He was the director of risk management at Ziff Brothers Investments and at Moore Capital Management, one of the largest hedge funds in the world. He served as the managing director in charge of firm-wide risk management at Salomon Brothers and was a member of Salomon's powerful Risk Management Committee. Mr. Bookstaber also spent ten years at Morgan Stanley in quantitative research and as a proprietary trader, concluding his tenure there as Morgan Stanley's first market risk manager. He is the author of three books and scores of articles on finance topics ranging from options theory to risk management. Bookstaber received a Ph.D. in economics from MIT.

Areas covered:

* Introduction: The Paradox of Market Risk

* The Demons of '87.

* A New Sheriff in Town.

* How Salomon Rolled the Dice and Lost.

* They Bought Salomon then They Killed It.

* Long-Term Capital Management Rides the Leverage Cycle to Hell.

* Colossus.

* Complexity, Tight Coupling, and Normal Accidents.

* The Brave New World of Hedge Funds.

* Cockroaches and Hedge Funds.

* Hedge Fund Existential.

For more information visit http://www.researchandmarkets.com/reports/c54267