Amaranth Liquidating

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Despite it’s founder’s protests last week that Amaranth planned to stay in business, the troubled hedge fund has hired Fortress Investment Group to advise it on selling its remaining assets. The move comes after negotiations for a sale to Citigroup broke down late last week.
The story of Amaranth’s meltdown has progressed quickly following revelations to investors of enormous losses suffered by the fund after its energy trading desk badly judged the direction of natural gas prices. Although the fund succeeded in selling off its energy positions, last week several staffers were reportedly not showing up to work and attempts to find a white knight financial institution to bail out the fund ended only in frustration.
A DealBreaker source who drove by Amaranth's Norwalk Greenwich headquaters over the weekend reported that there were still lights on over there, so they apparently haven't entirely closed up shop. We guess someone has to stick around to tell investors that their redemption notices aren't going to be honored.
Amaranth Hires Fortress Investment to Liquidate Hedge Funds [Bloomberg]

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