Thursday, 7 May 2015
Last updated 11 hours ago
May 19 2008 | 11:50am ET
Hiring Brian Hunter, the natural gas trader who brought down Amaranth Advisors, may have seemed like a dicey move, but it is paying off for Peak Ridge Capital Group.
The Boston-based private equity firm took a chance on the disgraced trader, whose bad bets cost Amaranth $6.6 billion in 2006, hiring him as an adviser to its Peak Ridge Commodity Volatility hedge fund. Employing essentially the same strategy that destroyed Amaranth, the fund has returned 138% since it launched in November, including a 49% return in the first quarter and 17% last month.
According to a letter to investors obtained by Bloomberg News, Peak Ridge's bet that the March contract would settle lower than the April contract paid off when March settled at a 1.5% discount to April.
Peak Ridge reportedly fully controls its trading, risk management and operations, and Hunter makes no decisions on his own, as he did at Amaranth.
Hunter, for his part, is still facing enforcement actions in the U.S. filed by the Commodity Futures Trading Commission and Federal Energy Regulatory Commission.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…