Amaranth Says It Transferred All Energy Trades to Third Party
By Katherine Burton and Matt Leising
Sept. 20 (Bloomberg) -- Amaranth Advisors LLC, the hedge fund whose wrong-way bets lost about $4.6 billion this month, reached an agreement to transfer all of its energy trades to a third party, according to a letter sent to investors.
The Greenwich, Connecticut-based firm was in negotiations with Citadel Investment Group LLC as of late yesterday, according to people with knowledge of those talks. Amaranth founder Nicholas Maounis didn't name the third party in his letter, a copy of which was obtained by Bloomberg News. He said more details will follow shortly.
Swings in natural-gas prices last week turned Amaranth into the biggest hedge fund meltdown since Long-Term Capital Management LP's 1998 collapse. Amaranth, which at its peak managed at least $9.2 billion in assets and was betting on a jump in gas prices, told investors on Sept. 18 that two of its hedge funds fell 50 percent this month.
To contact the reporters on this story: Matthew Leising in New York at [email protected] ; Katherine Burton in New York at [email protected]
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