How do you lose $5 billion in one week?

Why did they need to liquidate their position? Expiration, clients pulling out money...

 

This confirms that "wanker monthly" officially sucks ass.

Would be cool to run a book on which of their next "rising stars" blows up 10 figures in 1 week.

 

in order to meet margin calls; they were leveraged 5/1 on the gas trade and had the whole equities/convertibles portfolio leveraged as well.

 

imagine how much embarrassment and frustration he must be feeling. He was a rising star and now, probably no Hedge fund will look at him after this.

He would make an awesome retail trader though. Maybe he could come to my house and teach me a few things .

 

You can't get out of the position when you're half the open interest.

 

Amaranth is closing. Hunter is 32yo.

 

Don't then still have 3-4 billion under AUM? Or did all investors redeem shares?

 

Amaranth apparently also heavily traded penny stocks....penny stocks!!!!! Jeez, I would love to see what this prospectus looked like.

 

Yes, I believe it's locked at something > $3B based upon the Citadel deal. Maounis would be an idiot to run a fund >$5B under high water. Anyway, Amaranth has stated publicly that they're liquidating.

 

They must have been trading the Jack Hershey method.