In September 2006, the hedge fund Amaranth Advisors LLC lost a good USD 6 billion within one week due to bad speculation on the futures market for natural gas. The reason for the loss was a very high concentration risk as well as misjudgements of relative market price movements in different delivery dates and with regard to market liquidity. – The high-profile case triggered steps by regulators to improve risk management at hedge funds and increase disclosure requirements there. – See industry concentration, Gini coefficient, Henry Hub, Herfindahl-Hirschman index, granularity, clump risk, credit derivative, leverage ratio, true sale securitization.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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