Amaranth Advisors LLC was a hedge fund operating
in Greenwich, CT.5 The hedge fund launched in 2000 as
a multi-strategy hedge fund, but by 2005–2006 had generated
over 80% of its profits from energy trading. Although
Amaranth had several funds, the principle fund, with $7.85
billion at the end of August, 2006, was the Amaranth LLC
fund. This fund was structured as a multi-strategy fund that
could invest in virtually any market without any position
limitations. The various types of strategies included energy
arbitrage and other commodities, convertible bond arbitrage,
merger arbitrage, credit arbitrage, volatility arbitrage,
long-short equity, and statistical arbitrage.