Amaranth Advisors LLC was an American investment company and a multi- strategy hedge fund that was founded by Nicholas Maounis and is headquartered in Greenwich, Connecticut had. The company had up to 9 billion dollars for investment purposes. She collapsed in September 2006, after they had lost more than 6 billion U.S. dollars in natural gas futures. The loss of this company was one of the largest ever become known trading losses in economic history.
The company was founded in 2000 by Nicholas Maounis and took their headquarters in Greenwich, Connecticut. Over most of the time their activities arbitrage transactions were the profit earner.
In 2004 and 2005, the company shifted its focus to energy trading, triggered by Canadian Brian Hunter, the inversely oriented in the market with natural gas. Hunter had made enormous profits by " bullish " bet on natural gas prices after Hurricane Katrina in 2005. Hunter invested mightily in natural gas futures, which built up to a loss of 6.5 billion U.S. dollars, as the prices are not developed as expected and took an " ice-cold bath ." These events led to a debate and considerable media attention from the public on the issue of risk management practices in order to avoid catastrophic losses.
The fund had about 9 billion U.S. Doller in his administration; Reports showed that, the losses amounted to 65 percent of their total investment. Amaranth transferred its energy portfolio to third parties, Citadel LLC and JPMorgan Chase. On 29 September 2006, the founder of Amaranth sent a letter to members of the fund that he expose the business, and on 1 October 2006 committed Amaranth Fortress Investment Group to liquidate their assets.
On 25 July 2007 the Commodity Futures Trading Commission ( CFTC ) Amaranth and Hunter subpoenaed for attempted market manipulation of the futures on natural gas prices and because Falschbeauskunftung in the New York Mercantile Exchange (NYMEX ). In addition, accused the Federal Energy Regulatory Commission, Amaranth, Hunter and the dealer Matthew Donohoe of market manipulation. The CFTC and the FERC had different, conflicting versions of what Hunter should have done, and argue currently on the jurisdiction to do so.
On 22 January 2010 a judge ruled the Federal Energy Regulatory Commission that Hunter had violated the Commission's anti - manipulation rules. Judge Carmen Cintron found that " Hunter intentionally manipulated the settlement price for the forms of stationary natural gas futures contracts " have. His trading activity was specifically created to turn down the price of natural gas on the NYMEX in order to " earn Swap Positions of other businesses " to the. This decision is at the revision by the Commission.
Amaranth filed a lawsuit against JP Morgan to get one replaced with the claim that a billion dollars of losses on the grounds that the bank had intervened in the operations to complete more business with Goldman Sachs and Citadel. During the collapse of Amaranth Advisors of the company Centaurus was ascribed to sit on the other side of the larger trading partners and to benefit from Amaranth's losses.