Amaranth

Brian Hunter speaks his mind

Jim Kim — Wed, 09 Jul 2008 13:54:06 -0400

Fortune has caught up with Brian Hunter, the former natural-gas trader for Amaranth, which tanked in 2006 after Hunter's bets on the price of natural gas proved disastrous. He's been quiet for years, as he should be given the regulatory action he still faces. Fortune calls him an "international man of mystery." He turns out to be the quiet type, someone who speaks a lot about his family. He doesn't come off all that arrogant, and feels he's been wronged by regulators and the media (it must feel rotten to have people opine on news sites about whether you will commit suicide). But given all that has happened, he seems like old news. With the new regulatory priorities, my guess is that he will eventually find a way to settle all charges quietly.

For more:
- here's the Fortune article

Former Amaranth trader faring much better now

Wed, 21 May 2008 06:59:55 -0400

Remember Brian Hunter, who went from earning $80 million as an energy trader for Amaranth to the rogue's hall of shame when his massive bets on a big fall in natural gas prices didn't turn out well? Well, after some fits and starts, he's faring much better now. Hunter joined Peak Ridge Capital Group in September as an adviser to a new commodity hedge fund. The fund was up 17 percent in April, thanks to Hunter's natural gas bets, according to HedgeFund.net. The fund is up nearly 140 percent since he arrived on the scene. It's a feast-or-famine sort of industry.

For more:
- here's the HedgeFund.net article

When Dimon gets involved, JP Morgan gets sued

Fri, 16 Nov 2007 06:59:56 -0500

Portfolio chides Jaime Dimon for his take-charge approach, which has led to two suits recently. The news that Amaranth has sued JP Morgan certainly generated some buzz. The suit argues that JP Morgan interfered with Amaranth's deal to sell some assets to Goldman Sachs, a "devastating" blow. A Citadel deal also fell through. When the Amaranth team gathered for an update, they were surprised to find Dimon leading the call, "telling the Fund and Advisors there was a new trade, this time with Defendants." Recall Dimon found himself in the middle of a spat among Dow directors; two of whom were said to have held unauthorized talks with JP Morgan about an LBO. Dimon was called in by the CEO to explain and was alleged to have given up the names of the two directors holding the unauthorized talks. At least, he's not afraid to get his hands dirty.

For more:
- here's the Portfolio item

Related article:
- Let the Jaime Dimon era commence

Read more on: Jaime Dimon l JPMorgan Chase

ALSO NOTED: Is Citigroup turning around?; Nomura may exit mortgage-backed market; and much more...

Thu, 26 Jul 2007 06:59:50 -0400

Company News:
> Is Citigroup turning around? Article
> Wachovia expands alliance with Fidelity National. Article
> Wachovia launches Web-based mobile banking. Article
> U.S. Trust advisors move to UBS. Article
> Nomura may exit mortgage-backed market. Article
> T. Rowe matches expectations. Article
> SAC to sell minority stake? Article

Industry News:
> Are your customers worried about subprime issues? Article

Regulatory News:
> Ex-Amaranth trader accused by CFTC. Article
> Ex-Amaranth trader sues FERC. Article

And Finally... Do you love your kids too much? Article

ALSO NOTED: Lawyers win in Bank of America-offered suit settlement; Amaranth sued over natural gas prices; and much more...

Sun, 15 Jul 2007 20:01:30 -0400

Company News:
> Amaranth sued over natural gas prices. Article
> Lawyers win in Bank of America-offered suit settlement. Article
> Citigroup and Legg Mason may keep fund exclusivity pact. Article

Industry News:
> Subprime woes of banks reflected in CDS market. Article
> More subprime woes to come? Article
> Growth funds performance improves. Article
> Funds or fund companies. Article

Regulatory News:
> Conrad Black convicted. Article
> More on Black's saga. Article
> Democratic candidates back higher private equity taxes. Article

And Finally... Sandy Weill and the new titans. Article

ALSO NOTED: Big European fund to merge with U.S. special acquisition company; New York Times runs long awaited investigative pi

Sun, 24 Jun 2007 20:01:30 -0400

Company News:
> Big European fund to merge with special acquisition company. Article
> Citigroup aims to boost Nikko Cordial stake to 100 percent. Article
> Lehman to list fund in Amsterdam. Article
> Italian bourse considers LSE bid. Article

Dow Jones News:
> New York Times runs long awaited investigative piece on Murdoch. Article
> Close to editorial agreement with WSJ? Article

Industry News:
> NYSE Euronext will bid against LSE for Italian bourse. Article

Regulatory News:
> Senate to issue report on Amaranth and natural gas market. Article

And Finally... Best cities for young professionals. Article

ALSO NOTED: S&P revises high yields ratings methods; CBOE adds credit derivatives; and much more...

Sun, 10 Jun 2007 20:01:30 -0400

Company News:
> Rydex nears a deal. Article
> Bank of America says LaSalle decision was "a shock." Article

Industry News:
> Bill Gross: Economy to rebound. Article
> CBOE adds credit derivatives. Article
> S&P revises high yields ratings methods. Article
> Amaranth says pension knew the risks. Article
> CEOs fare well in mergers no matter what. Article

Regulatory News:
> Japan to raise fines for accounting fraud? Article
> JC Flowers seeks more control of Sallie Mae. Article

And Finally... How to answer a tough questions from your boss. Article

Goldman Sachs hedge fund under pressure?

Wed, 30 May 2007 20:01:38 -0400

Financial News Online reports that Goldman Sachs' top hedge fund has continued to lose ground even after it has hired a team of 17 traders from Amaranth. The well-known Global Alpha hedge fund dropped 3.4 percent in January through April, though it rebounded a bit in April. On average, hedge funds gained in the period. What gives? Global Alpha reportedly made some big losing bets that some, like the Canadian dollar and Norwegian krone, would fall. It was also hit by market-neutral bond and equity plays. Is this going to prove to be a lingering problem for the fund? Hard to say. It lost nearly 10 percent last year. The year before it gained almost 40 percent. Goldman Sachs according to Alpha was overtaken by JPMorgan as the largest hedge fund operator this year.

For more:
- here's an article from ii.com

ALSO NOTED: Pressure mounts on CME to boost bid; More on Lazard; and much more...

Wed, 09 May 2007 20:01:30 -0400

Company News:
> More on Lazard. Article
> Pressure mounts on CME to boost bid. Article
> Barclays launched three currency ETNs. Article
> PNC to buy commercial mortgage firm. Article

Industry News:
> Fund industry enjoying good times. Article
> April ETF assets rise. Article
> Private equity funds looking at railroads? Article

Regulatory News:
> Dow Jones director being probed. Article
> Amaranth settles with SEC. Article
> Morgan Stanley settles "best execution" charges. Article

And Finally... Gas price to stay high. Article

Firm offers easier escape from hedge fund snafus

Wed, 04 Apr 2007 20:01:35 -0400

We haven't seen a lot of hedge fund failures--fortunately--but they do happen. Enough so that a few companies are starting services that aim to buy stakes in distressed funds on the cheap. Argo Partners and Liquidity Solutions both made offers to investors in the ill-fated Bayou Group. Neither group seems to have persuaded investors to sellout on the cheap. But the idea is a good one. You have to think that any kind of failure will end up in legal limbo, keeping assets tied up. When Amaranth collapsed, several investors put their partnership interests up for sale on Hedgebay, a new marketplace for such investments, for 35 cents to the dollar. Distressed stakes trading is considered to be a growth area.

For more:
- here's a Business Week article