Amaranth Lessons Thus Far

In September 2006, Amaranth Advisors, LLC collapsed under the weight of losses, which were reported as $6.6-billion. Unfortunately, this meant that the fund had become responsible for the largest hedge-fund debacle to have thus far occurred. There were and are many surprising aspects of this debacle. How could a well-respected hedge fund implode so quickly? A revisited version of this paper was published in the Spring 2008 issue of the Journal of Alternative Investments.