market folly

Presented without comment is the latest investor letter from hedge fund Amaranth. If you're unfamiliar with this fund, they had previously managed up to $9 billion until they essentially collapsed back in 2006 after a natural gas trading fiasco. The firm was founded by Nicholas Maounis and he is the author of the letter below. Brian Hunter is the trader who became infamous for the natural gas trades and he has since founded a hedge fund, Solengo Capital Advisors. Ah yes, another fine example of the hedge fund boom bust cycle we see so often. When will investors learn?

Anyways, we digress. The document is embedded below and you can also try to download the .pdf here but there's no guarantees that link will still work.

Amaranth-Q1-Q2 Investor Letter (2009)