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Hedge Fund Manager Amaranth to Liquidate

IN BRIEF / FINANCE

September 30, 2006|From Reuters

Amaranth Advisors, the hedge fund manager that lost billions of dollars in energy trades, will suspend investor redemptions and liquidate its remaining positions, the company said in a letter to clients.

Amaranth will continue to pursue strategic alliances, the letter said, after its net asset value declined by 65% to 70% during September. Its funds are down 55% to 60% year to date, it estimated.

Amaranth suffered a $6-billion loss this month in wrong-way bets on natural gas derivatives, including $560 million in one day alone, which led to demands by investors for a return of capital.

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