According to this Reuters news story, Amaranth Advisors LLC has transferred the balance of its energy portfolio to one of its peers, the approximately $12 billion hedge fund complex known as Citadel Investments. The real interesting question is at what net price (loss) this liquidation was completed at. One suspects that Citadel took on the positions at some discount to spot prices, given that many market participants were/will be trading against what is known about the Amaranth portfolio exposures. Without knowing the specifics of the positions that were transferred, it would appear that a discount of between 2.5% and 20% would be appropriate for taking on such a public and notorious position. This will not help the investors who put their money with Amaranth Advisors, but it will satisfy at least one of rule of risk management: when confronted with a run-away position, liquidate and prepare to play the trading game another day after lessons have been learned. A key question will be whether Amaranth will be around to play in the future. The jury is still out on how such a sophisticated fund could lose close to half of its value in just two short weeks. Would you give your money to Amaranth for 2% and 20% fees going forward?