Natural Gas Futures and Spread Position Risk: Lessons from the Collapse of Amaranth Advisors L.L.C.

@article{Chincarini2008NaturalGF,
  title={Natural Gas Futures and Spread Position Risk: Lessons from the Collapse of Amaranth Advisors L.L.C.},
  author={Ludwig B. Chincarini},
  journal={Mutual Funds},
  year={2008}
}
The speculative activities of hedge funds are a hot topic among market agents and authorities. In September 2006, the activities of Amaranth Advisors, a large-sized Connecticut hedge fund sent menacing ripples through the natural gas market. By September 21, 2006, Amaranth had lost roughly $4.35B over a 3-week period or one half of its assets due to its activities in natural gas futures and options in September. On September 14, alone, the fund lost $681M from its natural gas exposures. Shortly… 

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Energy: Natural Gas

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