Posted on 09/22/2006 12:14:54 PM PDT by Ernest_at_the_Beach
SAN FRANCISCO (MarketWatch) -- Amaranth Advisors LLC Founder Nick Maounis told investors in a conference call on Friday how markets turned against the hedge fund in September, leaving it no choice but to sell its entire energy portfolio to other firms at a huge loss. Maounis said that "highly unusual market behavior," not just the usual price moves, virtually eliminated the firm's access to liquidity. "We did not expect that the market would move so aggressively against our positions," he explained. The fund lost $560 million on its natural gas trades on Sept. 14, he noted.
(Excerpt) Read more at marketwatch.com ...
Well Now......?
Sometimes you get the bear.....sometimes the bear gets you.
Crude, natural-gas futures post hefty losses for the week
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He's implying a conspiracy instead of admitting that he bet his entire firm on a single employee's aggressive trading of a handful of volatile commodity contracts.
Pathetic.
"We did not expect that the market would move so aggressively against our positions,"
Crude, natural-gas futures post hefty losses for the week ~ ... low of $60.55 a barrel Friday,
$560 mil is the tip of the iceberg. Word on the street is that losses will be about $6 BILLION when all is said and done.
CinNJ
I don't buy that myth.
How does the law firm know it's going to get paid? If I'm an investor, presumably with big bucks, I hire my own attorney to slap an injunction on this tactic, and prevent the hiring of this firm.
That happens when you are aggressively out on a limb.....Sometimes it gets sawed off.
Yeah, that's what I understand....6B!
You let a trade run rapid, and take insane risks... you were all fine as long as he was winning, when the tide turned and it bit.. you let him double down instead of just eating the loss and moving on.... and that destroyed you.
Its easy to make big bucks taking big risks... but its more luck than skill.... cause its just as easy to lose all your gains and more.
yup!
My first reaction was "where the hell are the regulators?", but the problem does not appear to be systematic, and these guys just made a risky bet and lost.
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"No one ever went broke underestimating the intelligence of the American people"
While Mencken's words still ring sadly true, he never contemplated a public education system under the autocratic thumb of overpaid union automatons who literally bore their students into submission, and blithely indifferent "administrators" whose sole function is to develop Zero Tolerance policies to insulate themselves from any sort of decision-making responsibility.
What the average high schooler learns about economics is not worth the cost of the solitary Post-It Note you could write it on... with room to spare.
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The above is from the commentary section of your link!