Friday, January 05, 2007

The Flip Side of Amaranth

FT via MarketWatch:
A Wikipedia entry for John Arnold, a 32-year-old hedge fund manager specialising in the energy sector, says that while "almost nothing is known" about his personal life, "his robot dancing still needs improvement".

Dancing ability notwithstanding, Mr Arnold has emerged as a leading player on the global energy trading stage.

The trading success of his Houston-based Centaurus Energy fund in recent times looks all the more interesting in comparison with the fortunes of Brian Hunter, the infamous Amaranth Advisors trader, also 32 years old, who last year presided over the loss of $6bn and the eventual closure of his fund. His bet on a rise in the price of natural gas this winter turned out to be spectacularly incorrect...

Mr Arnold generated gains of up to 150 per cent last year, according to hedge fund market sources.