It seems we are close to have Amaranth-2 and Amaranth-3 sequel in production.

First, the “Red Kite Metals” hedge fund got stuck with copper and zinc and lost 30% so far this year. The fund is trying to delay investor redemptions, same way as Amaranth did.

Second, we have an unnamed hedge fund, which purchased 90% of world aluminum supply in early January, for a total of $1.6 billion. Back then, it started facing troubles while rolling the outstanding contracts forward. Aluminum was $2,600 for 3-month forward delivery back then. Now the closest contract runs for $2,200, so the stuff burns the fingers. This unnamed fund will eventually collapse, and then we will learn its name.

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