Once again, the winds of autumn have delivered a hedge fund fiasco. Eight years ago it-was Long-Term Capital Management, the Greenwich, Conn-based firm of bond-trading wizards and Nobel economists that spectacularly imploded. This time it is Amaranth Advisors. The superficial similarities are hard to miss: As with LTCM, Amaranth, also domiciled in Greenwich, had a "risk management" system that was supposed to limit losses. But like its storied predecessor, Amaranth pushed the envelope by concentrating its bets-in Amaranth's case, in natural gas.
展开▼
