Brian Hunter Lands Gig At Private Equity Firm, Litigation Still Looms Large

Sep 12 2007 | 1:37pm ET

Brian Hunter, best known for his bungling natural gas trades that caused the collapse of $9 billion hedge fund Amaranth Advisors, has landed a new job advising a commodities fund.

According to SparksSpread.com, Hunter, who has been splitting his time between setting up his own hedge fund and defending himself against regulators who are accusing him of market manipulation during his Amaranth days, has been hired as a consultant by private equity firm Peak Ridge Capital Group and will serve as an advisor on the firm’s new commodities fund.

It is the first commodities fund for Peak Ridge, which specializes in real estate and venture capital. In the new fund’s documentation, the firm reportedly reveals that the pending litigation against Hunter could indeed interfere with his work on the fund.

Hunter is expected to invest at least $10 million of his own money in the new vehicle.

There is no word on what has happened to Solengo Capital, the fund that Hunter and some of his ex-Amaranth buddies tried to set up earlier this year. That fund was also roiled in controversy. Its offering memorandum was leaked to the press and Solengo, in turn, threatened to sue various media outlets for publishing its contents, which turned out to be a public relations nightmare for the aspiring hedge fund firm.

It was one year ago this month that Hunter made a series of bad bets on natural gas prices, costing his employer over $6 billion. Amaranth and Hunter are now the subject of various investigations, including one by the Commodity Futures Trading Commission, which in July filed a civil enforcement action against Hunter and Amaranth in New York federal court claiming that Amaranth and Hunter conspired to manipulate natural gas futures prices, and then sought to cover up the scheme.

RELATED STORIES:

Amaranth, Hunter Hit With Market Manipulation Charges
Amaranth Hits Back At Pension Adversary

Solengo Can’t Keep 'Confidential' Brochure Off The Web

Solengo Plans To Keep Hunter On Short Leash
Amaranth Hit For Naked Shorts


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...