When Nick Maounis' Amaranth hedge fund came crashing down after suffering big losses in energy trading, there were suddenly a large number of experienced traders and analysts facing unemployment. Since the losses at Amaranth were concentrated in one part of the firm—the energy trading desk run by Brian Hunter out of his Calgary office—there was no reason most of the folks at Amaranth should suffer any damage to their reputations. In fact, having been at Amaranth during the collapse might even be regarded as a plus—it certainly was a lesson in the value of risk management.
So while JPMorgan and Citadel picked-up Amarath's energy trades and turned them around for outsized profits, other banks were busy scooping up Amaranth's traders. Goldman, according to a report from Bloomberg, seems to have hired entire teams of Amaranth traders.
Goldman Sachs Group Inc., the world's biggest hedge fund manager, hired 17 traders from Amaranth Advisers LLC to expand the firm's investments in fixed- income markets, said a person briefed on the matter.
The team includes 14 credit specialists in New York and three in Singapore and will be led by Gregg Felton, who managed Amaranth's investments in debt markets, said the person, who declined to be identified because Goldman hasn't announced the additions. Some of the traders already started at Goldman.
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Goldman Hires Amaranth Traders as Hedge Fund Stumbles [Bloomberg]