Hedge Fund Manager Amaranth to Liquidate

Amaranth Advisors, the hedge fund manager that lost billions of dollars in energy trades, will suspend investor redemptions and liquidate its remaining positions, the company said in a letter to clients.

Amaranth will continue to pursue strategic alliances, the letter said, after its net asset value declined by 65% to 70% during September. Its funds are down 55% to 60% year to date, it estimated.

Amaranth suffered a $6-billion loss this month in wrong-way bets on natural gas derivatives, including $560 million in one day alone, which led to demands by investors for a return of capital.