Sunday, October 01, 2006

Amaranth: Speculating and Trading don't Work

Amaranth plans to liquidate all of its positions, after the struggling hedge-fund firm and Citigroup called off asset-sale talks.

Amaranth, on the heels of losing $6 billion mostly from energy trading, had already sold some investments and handed its troubled energy portfolio to J.P. Morgan Chase and hedge-fund Citadel Investments. The firm said it will suspend investor redemptions for Sept. 30 and Oct. 31, according to a letter the firm sent to investors, a move aimed at giving Amaranth more time to sell some of its more illiquid positions that may be harder to exit.

To read WSJ articles:

In the long run, trading KILLS! The best thing to do is to learn what works in investing. So, please read...

What has Worked in Investing by Tweedy, Browne Company LLC.

Happy investing,

Dah Hui Lau (David)

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