Amaranth Advisors LLC was sued by the San Diego County retirement fund for securities fraud….
Amaranth lied about trading strategies and made “excessively risky and volatile investments,” according to a complaint filed yesterday by the San Diego County Employees Retirement Association. Amaranth said fighting the lawsuit, the first tied to the largest-ever hedge-fund failure, will drain remaining assets earmarked for investors.
The complaint, filed in U.S. District Court in New York, seeks damages of at least $150 million based on the retirement plan’s $175 million investment. Amaranth has yet to refund $630 million, or about 23 percent, of the assets it held at the end of September….
I guess some of those “alpha engine managers” are better than others.