Big investors cry foul in Amaranth disaster

This should be a contentious meeting: Fund executives are scheduled to teleconference today with clients to answer questions and provide more information. If Amaranth is to survive, which would be quite the feat, it has a lot of relationship mending to do. I wouldn't look for big investors to re-up anytime soon. The complaints are many, and some are upset that the fund didn't notify investors of the big energy-related losses until it was too late to redeem. Others note that the level of risk assumed by the fund had previously been an issue with some investors--notably Lehman Brothers. Many are skeptical that losses are only in the 35 percent range. And the idea that most of the death trades were executed on lightly regulated all-electronic over-the-counter markets isn't going over well.

For more on the investor ire:
- Here's a New York Post article