Ex-Amaranth trader bounces back

Date: Wednesday, August 13, 2008
Author: Financial Times

Brian Hunter, the trader who was blamed for the collapse of $9bn hedge fund Amaranth Advisors two years ago, has taken advantage of last month’s plunge in commodity prices to help propel the year-to-date return at the fund he now advises to 230%.

The Peak Ridge Capital Commodities Volatility fund, which Hunter advises, returned 24% in July as commodities prices fell 10% for the month. Several other hedge funds with short positions in commodities also posted stellar returns - among them, Paul Touradji’s Capital Management fund, which investors say gained 6.5% over the month. But Ospraie Management’s $3bn flagship fund fell 13% to bring year-to-date losses to 15%. The outperformance of Hunter and others came as Morningstar said its 1000 Hedge Fund Index was down more than 3% for July, making it the worst month since Jan 2003.