Jeffrey Fulk
speaker
308 appearances
1 recordings
1 series
first heard Feb 2026
last heard 5 Feb
Jeffrey Fulk’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Feb 2026 with 1.
Appearances
So what was fascinating about long-term capital management is it was really the culmination of all of the modern portfolio theory that was created in the 70s to the 90s.
And a lot of this came out of the Chicago Booth School, where modern portfolio theory, Black-Scholes, option pricing, and all of these more sophisticated investment techniques were brought to the forefront and really led to the proliferation of
derivatives in the market.
And so long-term capital management really took this to the extreme and they were doing these trades that were based on an efficient market hypothesis.
And they basically pushed it so far into a market that was not broad enough or deep enough or sophisticated enough to handle what they were doing.
And so
when long-term capital management collapsed, it created this incredible opportunity in the market.
And so relative value fixed income spreads got really wide.
There was opportunities in emerging markets and the hedge funds that came out of, or after long-term capital management had this unique lens into where markets were going.
Just, they got ahead of what the market could sustain.
And so the,
post the collapse of long-term capital management, there were all these really interesting and compelling strategies.
And that led to this really fantastic era that I talked about earlier in terms of the opportunities we saw in the hedge fund space and why so much money came in to that market from 2000 to 2007, 2008.
Span on that.
Yeah.
So when there had been so much money that had gone into groups like long-term capital management, and then the banks were copying trades that they saw long-term capital management doing.
And so they took these prices to extreme levels.
And so maybe a good example would be merger R became a really interesting strategy, which is you play an M&A
investment.
And so if XYZ company gets bought for $30 a share, typically it'll trade at a discount to that.
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