Natural Gas Plunges As Hedge Fund King Calls It Quits (UNG)

May 2, 2012 2:33 PM EDT
Natural Gas prices, as represented by ETF United States Natural Gas (NYSE: UNG), are heading lower today on reports that hedge fund manager John Douglas Arnold is retiring. Arnold, who founded Centaurus Advisors in 2002 following the collapse of Enron, is credited with making three quarters of a billion dollars for Enron in 2001, and he has been given the title "the king of natural gas".

Forbes ranked Arnold number 377 on its 2012 list of world billionaires, and he is alleged to be worth $3 billion thanks to profits made trading natural gas. In one of his most notable trades, Centaurus took the other side of a trade against Amaranth Advisors, the infamous hedge fund that collapsed after losing 5 billion dollars trading natural gas futures.

Arnold is alleged to have a total of about $4 billion of assets under management. Reports say Arnold intends to return this money to investors. Centaurus was unavailable for comment regarding Arnold’s retirement, but it is rumored to be related to poor performance since 2010 and a difficult, ever changing trading environment for natural gas futures.

UNG last traded down 4.4 percent to $16.15. It was down just 2.5 percent before the Arnold news.

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