Friday, 28 April 2017
Last updated 7 hours ago
Jun 18 2010 | 2:12pm ET
It’s not quite Amaranth Advisors II yet, but hedge fund SandRidge Capital is edging awfully close to the abyss.
The $1 billion Texas-based firm is down 19% this year on bad natural gas trades. The benchmark March-April 2011 spread has surged 75%, leading some observers to make parallels with the same contract four years ago that destroyed Amaranth.
SandRidge is down 15% this month already, Reuters reports. Manager Andy Rowe told the news agency that the firm was burned by the natural gas market moving against his trades. Contracts has increased by more than 20% this month.
It is thought that SandRidge was short natural gas when the commodity began its unexpected surge.
“SandRidge got plastered,” an investor told Reuters.