Amaranth Advisors, the US hedge fund manager, has requested a meeting with investors today after admitting losses on its assets this month had risen as high as 65%. Citigroup is now reported to be in acquisition talks with the firm.

Nick Maounis, chief executive of Amaranth, said in a letter to investors obtained by Financial News that it had transferred its energy portfolio to a third-party and said it believed this would stem the losses on its $9.5bn (€7.4bn) of assets. The Wall Street Journal reports that JP Morgan and Citadel are the recipients of the transfer.