Editing Myron Scholes (section)

===Investment activity===
[[File:SCHOLES02.jpg|thumb|Scholes, 2009]]
In 1990 Scholes became more involved directly with the financial markets. He went to [[Salomon Brothers]] as a special consultant, then becoming a managing director and co-head of its fixed-income-derivative group. In 1994 Scholes joined several colleagues, including [[John Meriwether]], the former vice-chairman and head of bond trading at Salomon Brothers, and his future Nobel Memorial Prize co-winner [[Robert C. Merton]], and co-founded a [[hedge fund]] called [[Long-Term Capital Management]] (LTCM). The fund, which started operations with $1 billion of investor capital, performed extremely well in the first years, realizing annualized returns of over 40%. However, following the [[1997 Asian financial crisis]] and the [[1998 Russian financial crisis]] the highly leveraged fund in 1998 lost $4.6 billion in less than four months and [[When Genius Failed|collapsed abruptly]], becoming one of the most prominent examples of risk potential in the investment industry.

LTCM brought legal problems for Scholes in 2005 in the case of ''[[Long-Term Capital Holdings v. United States]]''. The firm's corporate structure and accounting had established an offshore [[tax shelter]] to avoid taxes on investment profits. Courts disallowed the firm's claim of $40 million in tax savings, finding it based on [[Substance over form|formal accounting losses]] of $106 million that represented no [[economic substance]].<ref>[https://www.nytimes.com/2003/07/13/business/a-tax-shelter-deconstructed.html "A Tax Shelter, Deconstructed"] by [[David Cay Johnston]], ''New York Times'', July 13, 2003</ref>

Subsequent to LTCM, in 1999 Scholes joined Oak Hill Capital, the private equity firm led by [[Robert Bass]]. There, Scholes and his LTCM colleague, Chi-Fu Huang, launched a new hedge fund, Oak Hill Platinum Partners.<ref>{{Cite news |title="Huang Joins Bass' Private Equity Shop" |work=Buyouts Insider |url=https://www.buyoutsinsider.com/huang-joins-bass-private-equity-shop/ |access-date=Jan 7, 2023}}</ref> 

Scholes is also chief investment strategist at [[Janus Henderson]], a role he held at legacy firm [[Janus Capital Group]] since 2014.<ref>{{Cite news |last=Comtois |first=James |date=July 8, 2014 |title=Nobel laureate Scholes among 2 joining Janus Capital Group |url=https://www.pionline.com/article/20140708/ONLINE/140709898/nobel-laureate-scholes-among-2-joining-janus-capital-group |work=Pensions & Investments}}</ref> Janus Capital merged with [[Henderson Group]] in 2017 to form Janus Henderson. In this role, he leads the firm's evolving asset allocation product development efforts and partners with the investment team contributing macro insights and quantitative analysis specific to hedging, risk management and disciplined portfolio construction.