Saturday, 20 December 2014
Last updated 1 day ago
Nov 9 2010 | 10:35am ET
Morgan Stanley has sued a hedge fund that allegedly defaulted on margin calls and left the investment bank holding the bag for $40.6 million in natural gas losses.
According to Morgan Stanley's lawsuit, filed yesterday in Manhattan federal court, Peak Ridge Capital Group failed to maintain proper margin requirements despite the "extreme risk" it had taken. The bank said it took a series of steps "in order to reduce risk and stabilize the book" in June, but to no avail: The Peak Ridge Commodities Volatility Master Fund Segregated Portfolio had already lost some 39% of its value on June 4 alone.
Peak Ridge, which is perhaps best known for briefly employing Brian Hunter, the natural gas trader whose bets destroyed Amaranth Advisors, did not comment on the lawsuit.
During his stint at Peak Ridge, Hunter managed money for the Commodities Volatility fund, which managed triple-digit returns in 2008, its first year. But Hunter left the firm after only a few months that year.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.