Financial Adviser – Larry Fink, founder of BlackRock, the New York-based investment management firm, asked a simple question: “When you see aberrant success, you have to ask, “Did I take too much risk?’’
In spring 2006, Fink was “troubled by Amaranth Advisors’ huge profits the previous fall when the hurricanes hit,’’ and, because Fink was alarmed by the hedge fund’s earnings’ volatility, “(BlackRock) paid a 3 percent penalty fee to withdraw its holdings earlier than the date set in its contract,’’ writes Barbara T. Dreyfuss in Hedge Hogs The Cowboy Traders Behind Wall Street’s Largest Hedge Fund Disaster.’
