Wednesday, 1 October 2014
Last updated 11 hours ago
Nov 9 2009 | 12:32pm ET
A court has reinstated one of Amaranth Advisors’ claims against JPMorgan Chase.
The collapsed hedge fund sued its clearing broker two years ago, accusing it of trying to force it into default. But a New York state court last year tossed Amaranth’s claim of tortuous interference, leaving just a breach of contract claim.
But an appeals court has restored the former allegation based on a statement allegedly made by two JPMorgan executives to Citadel Investment Group, which bought up two-thirds of its portfolio for pennies on the dollar. Steve Black and Bill Winters, the heads of JPMorgan’s investment bank, allegedly told Citadel founder Kenneth Griffin that Amaranth was “not as solvent as they are telling you they are,” and wouldn’t be able to find another taker for its poisonous portfolio, which had lost $6 billion on bad natural gas bets. Amaranth claims that $2.5 billion of those losses were the result of the cash concession it had to pay JPMorgan to take on its energy portfolio.
The ruling was not a complete victory for Amaranth: The hedge fund saw its breach of contract claim tossed by the appeals court, meaning it’s still got only one claim against JPMorgan. The collapsed hedge fund said it was “reviewing out options with regard to the dismissal of the breach claim.”
Amaranth claims that JPMorgan refused to execute a trade transferring its natural gas positions to Goldman Sachs so that it could take the portfolio for itself. The hedge fund is seeking $1 billion in damages.
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 McKitish of Peddie School's 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…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...