Wednesday, 24 September 2014
Last updated 14 hours ago
Sep 30 2006 | 8:59am ET
Amaranth Advisors’ survival is anything but certain, in spite of claims last week by founder Nicholas Maounis that the fund had “every intention” of staying in business.
The Greenwich, Conn.-based hedge fund firm lost $6 billion (out of $9.5 billion in assets) on natural gas bets this month, may be less sanguine about its hopes this week, as redemption demands pour in and the Securities and Exchange Commission launches an investigation into the mess.
Two investors who met with Maounis told Bloomberg News that he said Amaranth needs to find a buyer, for all or part of the firm, to stay above water. Citigroup is reportedly interested, and its hedge fund chief, Dean Barr, spent a lot of time in Greenwich last week in discussion, but there is no indication when or if a deal will be struck.
Possibly worse still, SEC Commissioner Paul Atkins said the regulator is investigating “whether there was any misrepresentation to investors.” Amaranth has retained law firm Skadden Arps Slate Meagher & Flom to help it put
into place a system for redemptions and prepare for any possible lawsuits.
Meanwhile, the New York Mercantile Exchange said it warned Amaranth in August that its natural gas trades were too big, and that the firm cut some of the trades in response. And the man behind those disastrous trades, Brian Hunter, has left Amaranth. The firm wouldn’t say whether he had resigned or been terminated, but it did say he didn’t receive any termination pay.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.