Amaranth hedge fund, based in Greenwich, Connecticut, has admitted that the firm lost its clients’ 6 billion U.S. dollars this month by betting incorrectly on natural gas prices.
The losses were caused by Brian Hunter, a 32-year old star trader, and the head of the firm’s energy trading desk. Mr. Hunter was gambling on the coming hurricane early this month, hoping the hurricane would push natural gas prices up. However, the hurricane disappeared, and the natural gas prices went down. 
Mr. Hunter made $800 million profits for Amaranth last summer by betting the up trend of U.S. natural gas prices because of hurricane Katrina. Hunter tried to repeat his fortune this year, but he failed.
By the way, it is said the amaranth is a mythical flower that never fades.
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