Amaranth's Brian Hunter to launch new Hedge Fund

Discussion in 'Wall St. News' started by makloda, Mar 13, 2007.

    By Mark DeCambre
    3/13/2007 5:07 PM EDT

    Brian Hunter, the commodities trader whose huge bet on natural gas took down Amaranth Advisors last fall, is said to be planning an energy-focused hedge fund.

    The planned venture is said to have been seeded with around $750 million to $800 million, from primarily Middle East investors.

    A message left with Hunter in Calgary, Alberta, wasn't immediately returned.

    The 33-year-old trader created his own mini-subprime-like meltdown back in September, when his ill-timed gas trades registered some $6 billion in losses for Greenwich, Conn.-based Amaranth. The fund at the time managed $9 billion in assets.

    Amaranth later sold its energy portfolio to JPMorgan Chase and Citadel, a big Chicago hedge fund.

    Two people familiar with the trader's thinking say Hunter has been trawling for funds over the past several months and expects to kick off the commodities vehicle in the spring. Little else is known about the operation at this time, including its name or precise structure.

    Amaranth losses turned the Calgary native into a goat on Wall Street and inspired comparisons to Long Term Capital Management's infamous collapse in 1998. But the trader also had his share of success.

    Hunter reportedly made more than $1 billion for Amaranth after Hurricane Katrina whipsawed gas prices in 2005. His bonus resulting from that deal: $75 million to $100 million.
  2. dhpar


    well looks like "more you blow out sooner you return" rule works.
    It is all about publicity - not about performance. Hunter is now almost like a celebrity so he will have no problems to get seed money....:)
  3. Read: Arabs who couldn't make it through US investment due diligence after 9/11 :p
  4. It could be another Jesse Livermore-type story in the making. It's slightly interesting that Middle Eastern investors would be interested in an energy-related fund. There will probably be excessive attention given to his trading results.
  5. The fund will be called Solengo Capital. Sort of bicoastal -- Calgary and Greenwich.


    More on "that little snafu" at Amaranth, what is "Solengo" (for the non-oenophiles among you) and its metaphorical significance here, and a link to an official CNBC video clip online (1m25s) about this eye-popping fish story, um, development:
  6. ???...............Solengo? It's more like bye-bye, adios, sayonara & "So Long" to your money.
  7. it seems that "blowups" in the HF world are dismissed

    by some specs as one time "black swan" event

    esp if the person who "blew up" had some prior "pedigree"
    or exceptional "track record" excluding the "blow up"

    look at Victor N , John M

    they were able to come back from their "misfortunes"

    lets hope the same can be said for some of their
    investors during their worst drawdowns in prior OPM
  8. I'll never understand people that say trading for yourself is better than managing OPM.. you cant go broke managing OPM.
    Sounds like a risk free opportunity to me, only hard part is raising money. You lose your investors money... oh well shit happens. (As I drive home in my ferrari)
  9. wallstreet is very forgiving. its understood the big risk is required to make big profits--- therefore risk is rewarded win or lose, one way or another.

    best, surf
  10. The pic from dealbreaker isn't the Brian Hunter of Amaranth fame.
    #10     Mar 24, 2007