GREENWICH, Conn., Sept. 30 (UPI) -- A Connecticut-based hedge fund that lost $6.4 billion in less than a month because of bad energy trades plans to shut down, its founder said.
Nicholas Maounis, founder of Amaranth Advisers, said in a letter to investors the fund was suspending all redemptions for Sept. 30 and Oct. 31 to "enable the Amaranth funds to generate liquidity for investors in an orderly fashion, with the goal of maximizing the proceeds of asset dispositions."
Investors met with Amaranth throughout the week, many demanding the return of their money, The New York Times reported.
The letter represents a turnaround for Maounis, who expressed hope as recently as Sept. 22 the fund would continue operations.
"We have every intention of continuing in business, generating for our investors the same consistently high risk-adjusted returns which have been our hallmark," he said at the time.
A fund spokesman declined to comment beyond the letter.
A hedge fund uses high-risk speculative methods to generate large profits.
