US
Last Amaranth Employee Set to Leave in March
Jan 31 2007
Anonymous
Amaranth Advisors, the hedge-fund manager hit by an investment loss of $6.5 billion in September, has reduced its headcount from 420 to 30 and expects its last employee to leave at the end of March.
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"Needless to say, even after the remaining Amaranth personnel depart at the end of the first quarter, I will continue to oversee whatever efforts are needed to dispose of all investments and distribute all remaining capital, as and when appropriate, and I will secure whatever assistance is necessary through the use of consultants and other professional advisers to help me accomplish this."
The firm repaid almost 60 percent of the capital in its funds before the end of 2006 and Maounis said he anticipated paying out more over the next two months. Only a small balance will remain, probably including a few positions where the funds are pursuing legal claims.
Amaranth's losses stemmed from its positions in energy derivatives and amounted to 70 percent of its investment portfolio. It was the largest loss recorded in the hedge fund industry, exceeding that of Long-Term Capital Management in 1998.
