Some things worth scanning that I may not get to in more detail:
- Malcolm Gladwell, the king of anecdotal empircism, uses sports and healthcare examples to make a useful point about insider vs. outsider views of an activity’s degree of difficulty.
- Nicholas Nassim Taleb has some very good comments on the Amaranth episode.
- Amaranth’s letter to investors is harrowing stuff:
We estimate that, as of Friday, September 29, 2006, the Net Asset Value of the multi-strategy funds had declined approximately 65% to 70% month-to-date and approximately 55% to 60% year-to-date. We are providing a range given the significant number of trades executed during the month and the limited time available to calculate the estimate.