Guess who’s back.
Ex-Amaranth gas trader Brian Hunter is back in the commodities game, courtesy of a shiny new hedge fund that boasts an Italian wine as its namesake. Via Greg Newton’s Naked Shorts blog, here’s a copy of the marketing brochure for Hunter’s Solengo Capital, in which, Newton points out, the word ‘risk’ features 23 times.
Update 30-04-07: Here’s a working link via FinAlternatives. Newton removed his after receiving a cease-and-desist letter from Solengo’s lawyers.
A recent Reuters report said Solengo had close to $1bn in commitments, and required a two-year lock-in. Shondell Sabad is the new fund’s CFO and COO, the report said. Hunter will also be joined by former Amaranth colleagues Shane Lee and Matthew Calhoun, both of whom are listed as portfolio managers on the prospectus.
Solengo, the prospectus reads, offers investors a “new approach to commodities,” with a model “designed to minimise the risk associated with leverage, liquidity, credit and operations.”
“The portfolio managers will have total freedom to develop their business,” the prospectus says. But if someone were to violate the capital to margin restriction, all capital locks would immediately be voided, “enabling investors to redeem immediately at no cost.”
No word on how the model intends to minimise the risk associated with Brian Hunter.