Long-Term Capital Management: What Went Wrong? And What Can We Learn from It?Long-Term Capital Management (LTCM) was a hedge fund that famously collapsed in 1998, losing over $4 billion in just a few months. The fund was founded by some of the most respected minds in finance, including Nobel Prize-winning economists Myron Scholes and Robert C. Merton. But despite its impressive pedigree, LTCM's reliance on complex trading strategies and high levels of leverage ultimately proved its undoing.