Launches & Closures

Poof! $35 billion gone from hedge funds


At least 83 funds closed shop in 2006, with energy portfolios highlighted by Amaranth leading the way

In a year that experienced the largest-ever hedge fund meltdown, at least 83 hedge funds closed their doors in 2006, erasing about $35 billion in assets from the hedge fund world. The largest shutdown, of course, was the spectacular collapse of $9.1 billion Amaranth Advisors. Amaranth's record failure boiled down to losing bets on highly leveraged natural gas positions, but only two other significant liquidations came from the energy sector. With 27 shutdowns, U.S. equity logged the highest number of closings, which