September 30, 2006

Amaranth to Shut Down

Investors in Amaranth Advisors LLC are not going to get any of their funds back right now following the hedge fund’s decision to suspend redemptions in a bid to sell its remaining assets as it plans to shut down operations. The Connecticut-based hedge fund manager hit the headlines recently for its injudicious decisions in the natural gas industry.

In what has been termed the biggest hedge fund meltdown, the company has lost more than $6.5 billion of its $9.5 billion assets. Redemption requests that were scheduled for the end of September and October will not take place, which means that investors cannot withdraw money for the next month.

A letter from Nicholas Maounis stated that redemptions were suspended so that liquidity could be  generated in an orderly fashion for investors.

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