Goldman Sachs Dynamic Opportunities, the world's largest listed fund of hedge funds, has said returns could slip into the red less than two months after its flotation. The warning came after one of its portfolio funds, Amaranth Advisors, revealed it had lost more than a third of its value.
Amaranth founder Nicholas Maounis told investors in a letter yesterday the group's "multi-strategy funds experienced significant losses in their energy-related investments following a dramatic move in natural gas pricesâ¦We anticipate our year-to-date losses might be in excess of 35% as we near completion of the disposition of our natural gas exposure".