Brian Hunter (trader)
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Brian Hunter ( born 1975 ) is a Canadian hedge fund manager that his employer, the U.S. hedge fund Amaranth Advisors by about half its assets, damaged approximately U.S. $ 4.5 billion realized risky speculation in 2006. In 2007, Hunter founded the hedge fund Solengo Capital.
Hunter grew up near Calgary, the capital of the Canadian province of Alberta. At the University of Alberta, he studied mathematics, had a job while studying on the oil rigs in northern Canada and dealt in the course of his studies with financial modeling and derivatives.
After graduating, he was the age of 24 for the pipeline company TransCanada Corp.. active. There he fell to his superiors because Hunter recognized early on pricing anomalies. Then he was allowed growing investment in natural gas options.
Later, Hunter moved to Deutsche Bank in New York City, where he earned a profit of U.S. $ 17 million achieved in 2001 and 2002 of U.S. $ 52 million with gas futures. Subsequently, he was promoted and agreed an annual income consisting of salary and bonus of $ 1.6 million By December 2003 his department had retracted a profit of U.S. 76 million, due to losses in the amount of U.S. $ 51.2 million melted together. solely in a week and makes the high risk of the power plant sector significantly. In February 2004, Hunter was relieved by Deutsche Bank of its powers and received no bonus. In April 2004, he was ultimately dismissed. In any of those processes Hunter tries to sue his bonus and accused the German bank to defame him personally.
Although the CEO of the hedge fund Amaranth Advisors Nick Maounis of Greenwich, Connecticut, Hunters problems at Deutsche Bank knew and the industry as some already as a " child prodigy ", but the other was also a ticking time bomb, Hunter received at Amaranth a contract for the energy portfolio that Amaranth had formed immediately after the spectacular collapse of Enron as one of the first hedge funds. The fund manager of the energy portfolio, Harry Arora, pursued a relatively conservative investment strategy and achieved a broad investment annually a return of approximately 20 to 40%. With successful speculation Hunter gained a status that allowed him to move his work from Greenwich to Calgary quickly.
But Hunter wanted to make bigger investments in highly speculative gas market, then in the summer of 2005, Arora and Hunter it agreed to create a separate trader books. This meant that each of the two separate orders could perform. Unlike any greenhorn in the investment sector, the max. May put 2 % of its assets to a single title, Hunter was ready to put everything on one card. In July 2006, he lectured that while the economic cycles in the oil business lasted a year, when they gas business, in which the transport problems have become even more important, would be in the few months. Through the two devastating hurricanes Rita and Katrina Hunter scored with his gas speculation in 2005 U.S. $ 1 billion, making him already become a legend on Wall Street. Late August 2006, he had achieved since the beginning of natural gas transactions a profit of U.S. $ 2 billion. However, within a week he lost U.S. $ 5 billion, because he had bet on rising prices, while energy prices collapsed by 12 %, after Amaranth Advisors was itself remains extremely serious problems, since the loss of more than half of the fixed assets of U.S. $ 9 billion, respectively. To such high losses to be able to produce at all, Hunter had to take about eight U.S. dollars of debt for every dollar of equity. Hunter tried to reduce the loss and was not immediately released from Arora from his duties. He managed to reduce the loss of U.S. $ 5 billion to U.S. $ 4.5 billion.
In the end, Hunter tangierte the loss of U.S. $ 4.5bn little, because his bonuses that ever U.S. $ 100 million accounted for in a good year, he was 09 /2007 Always keep according to a statement of the magazine Focus.
Meanwhile, Amaranth Advisors is under SEC Securities and Exchange Commission of the U.S. and succeeded the sale of its energy business to JP Morgan Chase and Citadel Investment Group. Some funds of funds, Credit Suisse, Morgan Stanley and Deutsche Bank are invested in Amaranth Advisors. It is so far (September 2006 ) is unknown, what are the losses of these banks at Amaranth Advisors. The case of Brian Hunter is reminiscent of the Nick Leeson, who had drawn his speculations in 1995 the British Barings Bank into the abyss.
- Hedge Fund Manager
- Born in 1975