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 shareholder agreement?
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...