Amaranth faces billions of dollars in natgas losses

Amaranth Advisors’ hedge fund said on Monday it may suffer billions of dollars in natural gas losses, becoming the latest hedge fund to be stung by energy price volatility this year.

The Connecticut-based company, which had over $9 billion in capital under management, said year-to-date losses may top 35 percent as it liquidates its natural gas positions.

“Last week, the Amaranth multi-strategy funds experienced significant losses in their energy-related investments following a dramatic move in natural gas prices,” Amaranth said in a letter to investors obtained by Reuters.

Amaranth added it was “aggressively reducing” its natural gas exposure to preserve investor capital.

Reuters