Deconstructing Amaranth

摘要

With all the stories attempting to deconstruct the Amaranth Advisors LLC hedge fund blow up, it is hard to know exactly what truly happened; besides, of course, that it lost approximately 65% or $6 billion in a week's time. One thing is for sure, stories attributing the losses to a bad long bet on natural gas are overly simplistic. While that may have been the net affect, institutional allocators, the likes that were invested in Amaranth, would never allow their . money to be placed in a fund with that much naked exposure.