To many involved in the close-knit US hedge fund industry, it was no surprise when Amaranth Advisors revealed on Monday that it had lost 35 per cent of its $7.5bn assets after a disastrous bet on natural gas prices.

The fund had often been regarded with suspicion over its risk management procedures and size of some of its trading positions, although its investment professionals were regarded as sufficiently adept and able to deal with the greater risks they took.