The collapsed hedge fund, Amaranth Advisors LLC, has returned more than half of its remaining capital after losing more than $6 billion in energy markets last year, according to Marketwatch.
Between 55 and 60 percent of the firm’s capital as of 30 September was returned through investor redemptions and withdrawals during the fourth quarter, according to a letter written by Nick Maouins, founder of Amaranth, to investors.
A favorable market helped Amaranth sell a large portion of its remaining positions without losing more money. Still, the firm cut its notional market exposure to $170 million from $2.25 billion at the beginning of the fourth quarter, says Maounis.
The firm’s portfolio lost between 0.8 and 2.3 percent in the fourth quarter, according to the letter. Amaranth will maintain 30 employees through the end of the first quarter, which is down from 420.