Streams

The Story Behind Wall Street’s Largest Hedge Fund Disaster

Monday, June 03, 2013

Securities analyst turned investigative reporter Barbara Dreyfus tells the story of Brian Hunter, John Arnold, Amaranth Advisors, and the largest hedge fund collapse in history. At its peak, hedge fund Amaranth Advisors LLC had more than $9 billion in assets. A few weeks later, it completely collapsed. Her book  Hedge Hogs: The Cowboy Traders Behind Wall Street’s Largest Hedge Fund Disaster charts the paths of two traders who dominated the speculative energy market, and traces the rise of the hedge fund industry.

Guests:

Barbara Dreyfus
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Comments [7]

Larry

I'm sorry but she should keep her day job as a writer. Public speaking, not so much.

Jun. 03 2013 12:36 PM
J from NYC

I am sorry to be so negative, but your guest is mixing up many concepts. And she is attributing behavior to hedge funds that was highly wide-spread among traders at the investment banks and large traders in all forms far before hedge funds became popular. A key point of explanation that she is missing is that many hedge funds were started by former Wall Street traders which took their former behaviors with them to the unregulated hedge fund world. Please take her interview with a grain of salt.

Jun. 03 2013 12:26 PM
Dan

I can barely hear what Ms Dreyfus is saying. Can she speak into the mike please?

Jun. 03 2013 12:21 PM
Jim

The logic does not follow... if the manager is allowed to keep %20 of profit, that actually provides incentive to take LESS risk. S/he can make low risk / low return investments and skim a huge premium. Thus, they get low risk and high return.

@fuva: LOL. I was thinking the same.

Jun. 03 2013 12:21 PM
fuva from harlemworld

IF Leonard were a millionaire. Clever.

Jun. 03 2013 12:17 PM
Joe from nearby

This system is rigged. They don't play by the normal rules everyone else has to- rules they themselves helped draft. The system is opague with no effective regulation. In other words- they're above the law.
Anyone can win playing a rigged game.

Jun. 03 2013 12:17 PM
RUCB_Alum from Central New Jersey

WorldCom?? Enron?? Were'nt these guys crooks who hoodwinked investors?

Can you explain why hedge fund workers are allowed to treat their annual incomes as long-term capital gains - with the tax implications - rather than the same marginal rates that the rest of us pay?

Jun. 03 2013 12:12 PM

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