Solengo Capital Advisors
I was informed by reader born2code that Brian Hunter, the trader for Amaranth Advisors who lost US$6 billion (out of $9 billion) on a bad energy trade in 2006, has now started a new hedge fund.
Investors don’t mind people making mistakes in the market and blowing up huge amounts of money. That happens,” said Greg Newton, a former publisher of a hedge fund industry newsletter who now runs an Internet blog called NakedShorts. “There’s been a lot of comeback stories in that business. But most of the people who’ve come back have at least waited a couple of years and done a little penance time.”
I can’t believe he has already started another hedge fund, that’s crazy. Would you invest your money in a trader who caused the largest hedge fund collapse in history?
I guess his new hedge fund “will likely remain grounded” now that the Commodity Futures Trading Commission has filed a recent civil action against him and Amaranth Advisors. And he is trying to stop the Federal Energy Regulatory Commission from bringing legal action against him because it would hurt Solengo.
“If FERC files the unlawful action it contemplates against me, Solengo and I will suffer irreparable injury,” he said in court documents that were signed in Calgary on Monday.
“Besides being Solengo’s president, Mr. Hunter said he has a 60-per-cent stake and has advanced a lot of money to the hedge fund.”
