After losing $6.4 billion Amaranth is expected to close 31 March, but its founder Nick Maounis has wasted no time, according to the Wall Street Journal Maounis is looking to start a new firm with former employees.
The new firm is rumored to be called “Continuum” or “Segue.”
Maounis says Amaranth’s problems resulted from an unforeseen decline in natural-gas futures prices, and he is proud of the firms risk management though it saw staggering losses last summer.
“(Maounis is) in for a rude awakening,” says Eric Rosenfeld, who recently left JWM and was former head of LTCM. “It will be hard for him to raise money. Institutional investors will have difficulty investing with anyone who lost a lot of money.”