Looks too good? It might just be


The first big blowup of the post-Goldstein era happened with Amaranth Advisors last month. To many, the near-collapse of Amaranth, which as of July 1 had $9.1 billion in assets and ranked 23rd on the Absolute Return Billion Dollar Club, came as a shock. Yes, Amaranth had outsize returns while many have been struggling. But it is hardly alone in defying the odds, which brings to mind the old saw: "If something looks too good to be true, it probably is."

At least it should be checked out. Some Amaranth investors did their due diligence and decided to leave