Contrary to what one trader told Reuters on Friday, the commodities market is not collapsing - and neither is Red Kite.
“Red Kite was more of a random noise than an Amaranth. Remember, Amaranth went from being a diversified hedge fund to an energy play. Red Kite is a big trader in this area, with diversified exposure, so they’re not going to crash.”
“Red Kite had a fantastic year, and now they’re giving some of the profits back. It’s a normal process.”
Bloomberg: No comment. Are you starting to catch on to how we always say a lot but really never 'say' anything at all? Mikey tasers us when we give opinions.
SeekingAlpha: Mayhaps. But more importantly, who is the next Brian Hunter, whose face we can print up on cocktail napkins for when we all get together to debate this whole thing?
It doesn't look good. What are the odds that the responsible trader is in his thirties like Brian Hunter at Amaranth last year?
DB: Not sure. We've precious little expertise in this area. But here's hoping, 'cause, from the man himself:
jfcarney (12:13:28 pm): I need a project. Brian Hunter's not doing it for me like he used to and I've already alphabetized and re-alphabetized my vintage Penthouse collection by cover model last name and worn out my VHS copy of Lord of the Rings. Please let RK be the new Amaranth. I'm hanging on by a thread here. It's this or my TiVo'd episodes of In Living Color. I'm begging you.