Before his FTX cryptocurrency empire collapsed, many of Sam Bankman-Fried’s public statements indicated that he made decisions “as though he had no risk aversion,” according to  Victor Haghani, the founder and chief investment officer of Elm Partners Management and a co-founder of the Long-Term Capital Management hedge fund. 

Haghani joined the What Goes Up podcast to discuss how Bankman-Fried’s tolerance for risk made him highly unusual under the “theory of choice under uncertainty,” and how the causes of FTX’s implosion differ from what triggered the failure of LTCM. Haghani also discusses his own approach to assessing risk when investing client assets at Elm Partners. (Note: This episode was recorded in early December, before Bankman-Fried was indicted for his alleged role in FTX’s failure.)

Before his FTX cryptocurrency empire collapsed, many of Sam Bankman-Fried’s public statements indicated that he made decisions “as though he had no risk aversion,” according to <a href="bbg://people/profile/16378892" data-web-url="" data-cke-saved-href="bbg://people/profile/16378892"> Victor Haghani</a>, the founder and chief investment officer of Elm Partners Management and a co-founder of the Long-Term Capital Management hedge fund.  Haghani joined the What Goes Up podcast to discuss how Bankman-Fried’s tolerance for risk made him highly unusual under the “<a href="https://www.advisorperspectives.com/articles/2022/11/30/a-missing-piece-of-the-sbf-puzzle" data-cke-saved-href="https://www.advisorperspectives.com/articles/2022/11/30/a-missing-piece-of-the-sbf-puzzle">theory of choice under uncertainty</a>,” and how the causes of FTX’s implosion differ from what triggered the failure of LTCM. Haghani also discusses his own approach to assessing risk when investing client assets at Elm Partners. (Note: This episode was recorded in early December, before Bankman-Fried was indicted for his alleged role in FTX’s failure.)

Hosts Mike Regan and Vildana Hajric are joined each week by expert guests to discuss the main themes influencing global markets. They explore everything from stocks to bonds to currencies and commodities, and how each asset class affects trading in the others. Whether you’re a financial professional or just a curious retirement saver, What Goes Up keeps you apprised of the latest buzz on Wall Street and what the wildest movements in markets will mean for your investments.

Hosts Mike Regan and Vildana Hajric are joined each week by expert guests to discuss the main themes influencing global markets.

What Goes Up

SBF's Love of Risk

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/10c7fbed-f926-42a9-b98c-af73014c4649/transcript

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