By: Steve Smith
The fallout out from last week’s Natural Gas surge is still coming down. Its casualties range from professional and supposedly sophisticated hedge funds — ranging from their wealthy clients to small retail investors.
Last week I wrote how Natural Gas’s huge move was exacerbated by hedge funds unwinding positions, which resulted in a 35% price explosion — likely leading to large losses and potential business collapses.
Sure enough, several funds, including high-profile Andurand Commodities Fund lost 20 percent-plus in a matter of days.
Interestingly enough, this comes almost exactly 10 years after hedge fund Amaranth blew up and lost some $9 billion; clients are still waiting to recoup some of their money.
There’s a reason… Continue reading at StockNews.com