Amaranth Advisors LLC, a hedge fund manager with about $9.5 billion in assets, told investors that its two main funds fell an estimated 50 percent this month because of a plunge in natural gas prices.
"We are in discussions with our prime brokers and other counterparties and are working to protect our investors while meeting the obligations of our creditors," Nick Maounis, the founder of the Greenwich, Conn., firm, said in a letter to investors obtained by Bloomberg News. The funds, which had gained 26 percent through August, are down at least 35 percent for the year, or about $4.6 billion.
WASHINGTON (MarketWatch) -- Rep. Mike Castle, R-Del., introduced a bill last week requiring regulators to study and make recommendations about hedge funds, Castle's office said Monday. The study should focus on disclosure of information, the congressman said. "Transparency in our financial system is important for market discipline and investor confidence," Castle said. Castle's bill comes as Greenwich, Conn.-based hedge fund Amaranth Advisors LLC is reportedly shutting down and returning investors' money following heavy losses on natural gas investments. In June, a U.S. court overturned an SEC rule requiring hedge fund advisers to register with the agency.
more here>>>> Rep. Castle bill calls for study of hedge fund industry
OTTAWA -- Analysts are predicting more financial carnage after one massive hedge fund told its investors that it is facing severe losses from enormous bets in the energy futures market, just a month after another fund went bust over its wagers in the same market.
"A lot of funds that jumped into the market have been going long on natural gas, and in some cases, extremely long," said Ben Smith, managing partner with First Enercast Financial in Denver.