Amaranth Slashes Workforce, Hires Fortress To Sell Assets

Oct 5 2006 | 5:07pm ET

Amaranth HeadquartersAmaranth Advisors, the embattled Greenwich, Conn., hedge fund which lost $6 billion of its $9.5 billion of assets on natural gas investments, is reportedly cutting 60% of its workforce next week. Charlie Winkler, chief operating officer, said in a statement on Thursday that as many as 250 of Amaranth’s 420 workers would be dismissed.

He said: “As a result of the need to reduce our operating expenses, we will have to take the unfortunate step of reducing our team size. We will do everything we can to assist departing employees in finding new employment and are putting in place a process to assist employees in finding new opportunities.”

Amaranth had been busy contacting hedge funds and financial institutions in an effort to find its soon-to-be ex-employees new positions. The hedge fund’s human resources chief, Stanley Friedman, reports Bloomberg News, e-mailed rivals regarding Amaranth’s employees.

“I know many of you have been contacted directly by employees, but more likely by recruiters,” Stanley wrote in the message. “If you work through us, you won’t have a fee associated with your hire.” According to media reports, Amaranth has about 353 people in Greenwich, Conn., 26 in London, 18 in Toronto, 11 in Singapore, nine in Calgary and three in Houston.

Meanwhile, the embattled firm has retained Fortress Investment Group as a sub-advisor to the Amaranth multi-strategy funds. Fortress will assist it in selling off the funds’ investment assets in order to generate liquidity for investors. Amaranth announced last Friday that its multi-strategy funds had suspended redemptions to allow for the sale of the firm’s investment assets. Nick Maounis, Amaranth’s chief executive officer, said in a statement that Amaranth will pay the fees associated with retaining the New York-based Fortress.

Meanwhile, the San Diego County Employee Retirement Association says its Amaranth losses have risen to $105 million.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.