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One hedge fund lost $5 Billion (yes that is a B) in a week on natural gas bets

Z

z0mb13

Lifer
Quoted from the WSJ:

AMARANTH'S ASSETS tumbled by some 50% this month after its energy-trading desk lost $5 billion in about a week on natural-gas bets. The Connecticut hedge fund said it was liquidating its natural-gas exposure.

hmm I wonder if this will precipitate the pull out of funds from other energy futures as well? cheap oil again? I can only wish!
 
That was over 50% of their total assets too. And in a related WSJ article they say:
Huge losses on natural-gas investments reported by Amaranth Advisors are expected to extend far beyond the multistrategy hedge fund itself -- and could have an impact on investors' appetite for riskier investments in other markets.
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Originally posted by: everman
That was over 50% of their total assets too. And in a related WSJ article they say:
Huge losses on natural-gas investments reported by Amaranth Advisors are expected to extend far beyond the multistrategy hedge fund itself -- and could have an impact on investors' appetite for riskier investments in other markets.
Click to expand...
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yeah I read the other article as well. I hope this will cause gas prices to fall
 
Funds like these are part of the reason that energy got traded up so high. The political risk and natrural disaster risk made energy look like a great way to make money. Now these funds are seeing prices cooling off and they are dumping thier holdings which is going to drive prices down once again. Gas has dropped almost $.80 a gallon around here in the last 2 weeks.....that is only possible when a commodity is severely overvalued.
 
f*cking finally. Those bastards have been playing the damn "drive it up" game on gas for so long. I hope the investors and hedge fund managers DIAF. The prices on gas didn't make sense. Now, ~$2.20 seems much more reasonable given the enviornment we're in now, not the $3.00+ we had.
 
yeah a few tried to corner the market on natural gas. they lost a bunch of money doing it. at first they drove up the price and now? heh good for me anyway
 
Yarrrr...what a great payback for those scumbag gas speculators!

//didn't know so many people read the WSJ on ATOT!
 
Originally posted by: JonTheBaller
Originally posted by: dmcowen674
Originally posted by: z0mb13
Topic Title: One hedge fund lost $5 Billion (yes that is a B) in a week on natural gas bets
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Good :thumbsup:
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You should be pissed - this makes you look stupid for blaming the oil companies.
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I am stupid but I still blame the Oil Companies and the rich boys in bed with them.
 
Originally posted by: dmcowen674
Originally posted by: JonTheBaller
Originally posted by: dmcowen674
Originally posted by: z0mb13
Topic Title: One hedge fund lost $5 Billion (yes that is a B) in a week on natural gas bets
Click to expand...

Good :thumbsup:
Click to expand...
You should be pissed - this makes you look stupid for blaming the oil companies.
Click to expand...

I am stupid but I still blame the Oil Companies and the rich boys in bed with them.
Click to expand...
Look up the profit to revenue ratio of the big oil companies and you should be relatively unimpressed.
 
Originally posted by: JonTheBaller
Originally posted by: dmcowen674
Originally posted by: z0mb13
Topic Title: One hedge fund lost $5 Billion (yes that is a B) in a week on natural gas bets
Click to expand...

Good :thumbsup:
Click to expand...
You should be pissed - this makes you look stupid for blaming the oil companies.
Click to expand...

And who do you think Oil companies use as investors?

 
Reading from the article linked above.

In 2004, Amaranth protested a new rule proposed by the Securities and Exchange Commission that would have required certain hedge funds to register with federal regulators and undergo greater scrutiny.

?Contrary to media stereotypes of hedge fund managers, Amaranth does not ?operate in the shadows? outside of regulatory scrutiny,? its general counsel wrote. ?We do not understand why the commission is proceeding so urgently with this rulemaking when the public policy problem to be addressed remains poorly defined and the proposed regulatory response is so burdensome.?
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Got own by themselves. 😛
 
Originally posted by: z0mb13
Quoted from the WSJ:

AMARANTH'S ASSETS tumbled by some 50% this month after its energy-trading desk lost $5 billion in about a week on natural-gas bets. The Connecticut hedge fund said it was liquidating its natural-gas exposure.

hmm I wonder if this will precipitate the pull out of funds from other energy futures as well? cheap oil again? I can only wish!
Click to expand...

Yarr!! I say keel-haul the lot of them

 
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