Thursday, September 21, 2006

Hedge fund trouble and the analyst job market

The Business Times reported today that Amaranth Advisors was raising new equity after wrong-way energy bets lost the firm US$4.6b this month. That's quite a chunk of the firm's US$9.5b under management. Apparently, this is the biggest hedge fund loss since LTCM collapsed in 1998.

I'm just looking at this in relation to the huge rise in recruitment by hedge funds in Singapore over the last year. Several of my friends have made the move, lured by lucrative fees, attractive profit-sharing schemes and off course, the potential for outsized gains. Amaranth itself has an office in my building.

Timely reminder... good luck at the tables, guys!

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