MIT economist pitches cancer megafund
Andrew W. Lo, the hedge fund manager and MIT business professor, wants to bring Wall Street-style financial engineering to a crucial social need -- curing cancer. The economist is known for his “adaptive markets” financial theory, which maintains prices and investors are not always rational. But now he is looking beyond stocks, bonds and derivatives. He proposes to direct a giant river of dollars into early-stage cancer research “megafund” -- up to $30 billion.