First published 2010
Scott Patterson examines how quantitative analysts transformed Wall Street through mathematical models and computer algorithms. The book centers on four key figures: Peter Muller, a Princeton-trained mathematician who managed the PDT hedge fund while playing keyboard in subway stations; Ken Griffin, who traded bonds from his Harvard dorm room and built Citadel Investment Group; Cliff Asness, the volatile founder of AQR known for his brilliance and explosive temper; and Boaz Weinstein, a chess master who dominated credit default swaps at Deutsche Bank. Patterson traces how these "quants" used differential calculus, quantum physics, and advanced geometry to replace traditional gut-instinct trading with formula-driven strategies. Their mathematical approach generated enormous profits for two decades, creating a digitized trading machine that moved billions instantly. But their sophisticated models also planted the seeds of financial catastrophe. The book reveals how these brilliant minds watched their fortunes evaporate during the crisis, questioning whether their success had been mere luck and whether mathematical truth in markets even exists.
Genres: business, economics, 21st-century, finance, academic, algorithms
Vibes: intimate, suspenseful, thought-provoking
Tropes: investigative-journalism, rise-and-fall
Setting: Princeton, Harvard, Deutsche Bank
Period: 2000s, 2010s
337 pages · Hardcover · Crown Business