Critical Lessons from the Amaranth Debacle

(via valueblogger.com)

Value Blogger tackles the difference between focused investments held by value investors like Eddie Lampert, Joel Greenblatt, Warren Buffett, and Mohnish Pabrai and the concentrated speculative bets made by Amaranth. What is riskier? How can you eliminate risk? How does Lampert's due diligence differ from complex hedging strategies? Overall, a good post on an important topic.