A report on 10News.com said Amaranth increased its own loss estimate to 55% during a teleconference last week. Initial news of its collapse based on bad wagers on natural gas prices reported a loss of 35% (See San Diego Retirement Fund to Feel Hit from Hedge Fund Collapse ).
“Using that loss figure, and applying it to our $175 million, we figure we lost about $87 million of that,” Brian White, executive director of the pension fund, told the North County Times, according to the 10News report. The $175 million that the pension association invested in the hedge fund firm represented less than 3% of the fund’s total assets.
Pension fund officials and investment counselors said the estimated loss will not hurt the fund’s beneficiaries.