Editing Long-Term Capital Management (section)

==Early skepticism==
Despite the fund's prominent leadership and strong growth at LTCM, there were skeptics from the very beginning. Investor [[Seth Klarman]] believed it was reckless to have the combination of high leverage and not accounting for rare or outlying scenarios.<ref name="Business Insider" /> Software designer [[Mitch Kapor]], who had sold a statistical program with LTCM partner Eric Rosenfeld, saw [[quantitative finance]] as a faith, rather than science. Nobel Prize winning economist [[Paul Samuelson]] was concerned about extraordinary events affecting the market.<ref name="Business Insider" /> Economist [[Eugene Fama]] found in his research that stocks were bound to have extreme outliers. Furthermore, he believed that, because they are subject to discontinuous price changes, real-life markets are inherently more risky than models. Fama became even more concerned when LTCM began adding stocks to their bond portfolio.<ref name="Business Insider" />

[[Warren Buffett]] and [[Charlie Munger]] were two of the individual investors that Meriwether approached in 1993 to invest in the fund. Both analyzed the company but turned down the offer, considering the leverage plan to be too risky.<ref name="Dunbar 2000 142"/>