Did anyone else go to see Myron Scholes' seminar talk at the Fields Institute at U of T tonight? It was pretty packed.I know he's currently organizing his "Oak Hill Platinum Partners" Hedge Fund, and I felt his speech had a strong agenda towards indirectly market this thing. Any thoughts?

know he's currently organizing his "Oak Hill Platinum Partners" Hedge Fund, and I felt his speech had a strong agenda towards indirectly market this thing. Any thoughts? William Hamilton feels a 2,500 word critical essay on Scholes' involvement with LTCM coming upon him.

I feel a rather shorter essay coming on. Arrange the following words :"away run barge pole with touch not a scam is it do"

Was Scholes trying to sell anything too different from the LTCM model (arbitrage and leverage if memory serves...)Was Scholes not subject to any post-LTCM penalties - JWM was banned from the industry for a very long time wasn't he?

JWM was banned from the industry for a very long time wasn't he? As far as I'm aware, JWM was back into trading as soon as he could raise a billion dollars, and a few months after LTCM. He never did anything illegal.

QuoteWas Scholes trying to sell anything too different from the LTCM model (arbitrage and leverage if memory serves...)He never actually mentioned his hedge fund, but his talk was basically about how hedge funds can be a "provider of liquidity and risk transfer" at a premium to investers. I was surprised he actually said that the Big Banks "didn't know what they were doing" in a room full of bankers..I liked his presentation software though (he didn't use Powerpoint, I wonder what he used?); He had this idea-flow tree diagram program, so he can click on one box, and other boxes would branch out.

akimon :Maybe he was using a variant of Tony Buzan's mind map software featured here ??

QuoteOriginally posted by: OmarHe never did anything illegal.yes, losing money of yours/others is not an illegal activity

QuoteOriginally posted by: akimon<blockquote>Quote<hr>I was surprised he actually said that the Big Banks "didn't know what they were doing" in a room full of bankers..I attended a similar speech of Myron Scholes at UofT back in 1998. He was saying something similar about UBS. The old UBS lost big $$s in the past and Scholes said that this was the result of poor risk management processes/people. He also added that LTCM was doing a lot of business with them (UBS).

1) Scholes has been with Oak since LTCM went under.2) UBS were idiots. They sold to partners a call striken at 80% forward price of the fund for about $180 mils and bought about $800 mills of shares to "hedge". Net loss for UBS -- $680 mills.3) I love how everyone and his grandmother beats up on LTCM guys. Especially when people analyze their trades and explain how Scholes, Merton, or guys from Salomon arb group didn't understand something like liquidity or volatility. Yeah, they lost money, including their own, but don't assume that's just because they were such idiots or crooks.

--------3) I love how everyone and his grandmother beats up on LTCM guys. Especially when people analyze their trades and explain how Scholes, Merton, or guys from Salomon arb group didn't understand something like liquidity or volatility. Yeah, they lost money, including their own, but don't assume that's just because they were such idiots or crooks.---------------I just wonder how and why the Swedish Academy hasnt call them to submitt back their Nobel prize Of course this isnt the first time this Academy can be blamed for negligence. Recall that Kissinger has been awarded the Nobel prize for Peace.

>Of course this isnt the first time this Academy can be blamed for negligence. Recall that Kissinger has been awarded the Nobel prize for PeaceApart from the fact that unlike other Prizes, the Peace prize is awarded by the Norwegian Nobel committee

CekpetYou may be correct. But that doesnt contradict the fact that they should be little bit more cautious and skeptical before someone is nominated and awarded the rare honour indeed to be a Nobel laurreate. Or else the prize is at risk to degraded.

LTCM blowup has nothing to do with Sholes and Merton winning the Nobel prize. Period.Of course, Black would have shared in the prize had he still been alive.

quantie: Yeah that's the one, it looks so cool!QuoteI attended a similar speech of Myron Scholes at UofT back in 1998. He was saying something similar about UBS. The old UBS lost big $$s in the past and Scholes said that this was the result of poor risk management processes/people. He also added that LTCM was doing a lot of business with them (UBS).QuoteUBS were idiots. They sold to partners a call striken at 80% forward price of the fund for about $180 mils and bought about $800 mills of shares to "hedge". Net loss for UBS -- $680 mills.The funny thing was that in order to get UBS to enter that deal, LTCM actually sent Scholes to UBS to give "lectures" on option pricing to show how a great deal their warrant was (to UBS). And only after ripping thier faces off that Scholes disses the bank for its poor employees/risk management. I guess it is just common practice in the derivatives business...