Marketwatch – Losses of more than $3 billion suffered by Amaranth Advisors LLC this month may not just hit the wealthy individuals and big Wall Street institutions that have historically invested in hedge funds. Pensioners and state workers could also feel the effects.
Amaranth could suffer year-to-date losses of 35% after natural gas trades went awry, founder Nicholas Maounis said in a letter to investors that was obtained by MarketWatch on Monday.
The Greenwich, Conn.-based hedge fund, which had almost $10 billion in assets earlier this year, counted at least one public pension fund among its investors.
The San Diego County Employees Retirement Association (SDCERA), which oversees more than $7 billion on behalf of retirees and employees of the county, invested $175 million in Amaranth last year, according to hedge fund industry publication Alpha magazine.
