New York Sun – A California public employees’ pension fund that lost more than $100 million in the collapse of a major hedge fund, Amaranth Advisors LLC, announced yesterday that it has retainedlegal counsel to consider bringing a lawsuit over the loss.<\/p>\n
Following a closed board meeting yesterday morning, the chairman of the San Diego County Employees Retirement Association, David Myers, said a securities and class-action law firm with offices in New York and San Diego, Bernstein Litowitz Berger & Grossmann LLP, will conduct a broad investigation into who was responsible for the Amaranth implosion.<\/p>\n
“Bernstein Litowitz has been directed to explore the viability of all potential options,” Mr. Myers said.<\/p>\n
Amaranth’s fortunes headed south last month after a complex series of bets on increasing natural gas prices was undercut by declines in energy costs. In the course of two weeks, about $9 billion in assets under management by the Greenwich, Conn.-based fund dwindled to roughly $3 billion.The San Diego pension fund said its $175 million Amaranth investment, which was valued at $234 million in June, is now estimated to be worth only $70 million.<\/p>\n