As a result of its spectacular tech fail on Aug. 1, Knight Capital became the latest financial services firm to have pushed to the brink of collapse before being either rescued at the eleventh hour or permanently wiped out.
Amaranth AdvisorsHeadquartered in Greenwich, Connecticut, Amaranth Advisors had $9 billion under management in its heyday. The firm, which was founded in 2000, claimed to employ a multi-strategy approach to investing that allowed “nimble portfolio managers to seize opportunities in whatever markets seem to be most promising at the time,” according to a 2006 New York Times article. In 2004, the hedge fund turned its focus to natural gas. The bet initially paid off: Amaranth made $1 billion in 2005 on rising energy prices. But in 2006, Amaranth lost more than $6 billion, leading to its collapse in what became one of the largest known trading losses of all time.
Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio