Amaranth losses puts risk management in the spotlight
After unprecedented losses on the natural gas market - $560 million on September 14 alone - Amaranth announced its multi-strategy funds had declined approximately 65% month to date, and approximately 55% year to date.
Amaranth's multi-strategy fund isn't the first casualty of the natural gas markets. Energy hedge fund MotherRock, which had assets under management of $430 million at its peak, incurred fatal losses on its natural gas positions in August.
However, many analysts believe that it wasn't
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