Maybe they can call the sequel When Genius Failed – Again. John Meriwether, who famously brought the financial system to its knees a decade ago with Long Term Capital Management, is planning a new offering after his latest “relative value” fund at JWM Partners plunged in 2008. In hoping that the third time is the charm, Mr Meriwether is far from alone among masters of the universe and their long-suffering clients.

Other poster boys for the triumph of hope over experience include alumni of Amaranth, the biggest hedge fund loss on record, and of Dillon Read, who blew a multibillion- dollar hole in UBS’s balance sheet and are now starting a new firm. Gas trader Brian Hunter torpedoed Amaranth and had an earlier mishap as a star proprietary trader at Deutsche Bank, but was said to have racked up spectacular gains at a third fund in early 2008 as commodities soared. There is no news of how he did when prices fell, but such rapid comebacks should be viewed cautiously. Take Victor Niederhoffer who blew up spectacularly in 1997 and then ran the red-hot Matador Fund early this decade, only to shut it after the financial crisis caused a sharp reversal. It seems investors remember pleasure better than pain. Even serial failures can attract capital, though perhaps less than they once enjoyed.