Hedge Fund Centaurus Fined for Violating Nymex Limits

Centaurus Energy Master Fund LP, a Houston-based energy hedge fund run by former Enron Corp. trader John Arnold, was fined $15,000 by New York Mercantile Exchange for violating position limits in natural gas.

Centaurus exceeded limits for the expiring December 2010 Henry Hub Natural Gas Look-Alike Last Day Financial Future on Nov. 24, Nymex said in a disciplinary action published today. It’s the fund’s third position limit violation in 24 months, Nymex said.

Arnold didn’t immediately return an e-mail seeking comment.

The fund had 5,005.5 short contracts, 5.5 over the limit. The infraction resulted in a $15,000 fine and a disgorgement of $4,015 in profits, the exchange said.

The Centaurus Energy Master Fund, founded in 2002, had $5 billion under management and more than 70 employees and focuses on electricity and natural gas trading, Arnold told regulators in August 2009.