Amaranth is a good hedge fund. It may even be a great fund
following a period of performance, which has seen returns of
close to 11% in 2002, with a good run continuing into 2003. So
why does Nick Maounis and his Greenwich-based team have to
spoil it all in their attempt to get investors to approve a new
On the face of it, all the $2.3 billion multi-strategy fund
is doing is a little bit of housekeeping. They are making a few
anti-money laundering changes. Then there are a few points on
confidentiality. Then you spot a couple of worrying features.
The first is a few clauses about three-year liquidity. The
second is a Citadel-style move to stop investors from seeding
any manager who leaves Amaranth to start on their own.
In a way, this shouldn't come as much of a surprise as
Charlie Winkler, the...