A commodity hedge fund advised by Brian Hunter, the energy trader whose bad bets triggered $6.6 billion of losses at Amaranth Advisors LLC in 2006, returned 49 percent in the first quarter, according to two investors.
The Peak Ridge Commodity Volatility Fund, run by Boston- based private equity firm Peak Ridge Capital Group Inc., gained 6 percent last month and 103 percent since it was started in November, according to the investors who didn't want to be identified because the information is private. Peak Ridge Chief Financial Officer Shondell Sabad declined to comment.
``For some investors, Hunter's name is a red flag and they will avoid the fund,'' said Patrick Tuohy, global head of sales and marketing at HSBC Holdings Plc's alternative investment group, which invests about $55 billion in hedge funds. ``However, some may dig deeper because in the past he did deliver some spectacular returns.'' HSBC's hedge fund group is not an investor in Peak Ridge's fund....MORE