September 24, 1998 – Charles Gradante, co - founder of Hennessee Group LLC, interviews with Suzie Gharib on Long Term Capital bailout.
Charles Gradante answers the fundamental question "What is a hedge fund?" and he educates the public about the history of hedge funds. Gradante is one of Wall Street's most sought after opinion leaders on matters of the stock market, the global economy, hedge fund strategy and asset allocation. He is the Co-Founder of Hennessee Group (www.HennesseeGroup.com) with Partner, E. Lee Hennessee. He has been invited to speak before the Senate Banking Committee, House Banking Committee, SEC, and CFTC on hedge fund issues, the regulation of the hedge funds industry, potential systemic risk related to hedge funds, and the Long Term Capital management Crisis. The Hennessee Hedge Fund Index is the oldest and is arguably the most widely sourced indeces in the industry. Noteworthy highlights from this particular interview include Hennessee Group Managing Principal, Charles Gradante, discussing the collapse of Long Term Capital. Gradante describes the collapse of LongTerm Capital as an isolated case and a "fat tail" event. The consortium of banks has contained the toxic impact of Long Term Capital Management (LTCM) on the stock and bond markets worldwide. Gradante posits that margin requirements should be increased on levered bond arbitrage because volatility has increased dramatically since 1990. Gradante also states that the Fed acted swiftly in the LTCM matter.