The Amaranth Disaster: How One Trader Lost $6 Billion on Natural Gas
“Amaranth” is Greek for “imperishable.” The flower that never fades. Somebody at the hedge fund picked that name on purpose, imagining a fund that would last forever. Instead, Amaranth Advisors became the biggest hedge fund collapse since Long-Term Capital Management in 1998. Two-thirds of its capital gone in two weeks. Six billion dollars, vanished on natural gas bets. Chapter 22 of Torsten Dennin’s “From Tulips to Bitcoins” tells this story.