Hunter’s Bets Keep Paying Off For Peak Ridge

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.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note