Another Theory About Harry Arora and Amaranth's Meltdown

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We've been assured by quite a few people that Harry Arora was indeed set to leave Amaranth to start his own fund, and that the rise of Brian Hunter had very little to do with it. This leads to our new, favorite theory of How Brian Hunter Got That Way.
Here's the unsubstantiated gist: WIth Amaranth's equity underperforming, the hedge fund was increasingly dependent on its energy traders to produce returns. With Harry practically out the door, the threat of SAC scalping Brian Hunter was a very serious threat to Amaranth's bottom line. Following this line of thinking, it was Harry's departure that was the "first domino," the one that created the desperate need to retain Brian by giving him $1 billion of the firm's assets, letting him run his own shop up in Calgary and giving him 15% of the desk's returns.

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