Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
Melt Downs Are Coming
http://www.marketwatch.com/news/story/Story.aspx?guid=%7BE5FE0DE4%2DBFE4%2D4081%2D8604%2D755143FDB4B7%7D&siteid=
"In order to prevent further mark-to-market losses on the natural gas positions, and to reduce the risk of defaulting on margin calls, we transferred these positions to a third party at a price that resulted in additional significant losses," Amaranth founder Nick Maounis wrote in an email notice to investors Wednesday evening.
Including losses on the natural gas portfolio, the cost of the third-party transaction, and losses on other positions that were sold to generate liquidity, Amaranth estimates that the net asset value of its funds has declined 65% month-to-date and 55% year-to-date.
Investors are now scrambling to get out of their Amaranth investments, leaving the firm struggling to survive.
http://www.marketwatch.com/news/story/Story.aspx?guid=%7BE5FE0DE4%2DBFE4%2D4081%2D8604%2D755143FDB4B7%7D&siteid=
"In order to prevent further mark-to-market losses on the natural gas positions, and to reduce the risk of defaulting on margin calls, we transferred these positions to a third party at a price that resulted in additional significant losses," Amaranth founder Nick Maounis wrote in an email notice to investors Wednesday evening.
Including losses on the natural gas portfolio, the cost of the third-party transaction, and losses on other positions that were sold to generate liquidity, Amaranth estimates that the net asset value of its funds has declined 65% month-to-date and 55% year-to-date.
Investors are now scrambling to get out of their Amaranth investments, leaving the firm struggling to survive.