NEW YORK (CNNMoney.com) -- Amaranth Advisors is the latest hedge fund to take a hit on falling natural gas prices, possibly having lost more than 35 percent of the fund's investment, according to reports Monday.

"Last week, the Amaranth multi-strategy funds experienced significant losses in their energy-related investments following a dramatic move in natural gas prices," Amaranth said in a letter to investors obtained by Reuters.

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One trader said the loss could be devastating to Amaranth.

"That's a huge hit for a hedge fund to take," said Brian Hicks, co-manager of the Global Resources Fund at U.S. Global Investors. "That could drive a lot of the shareholders out."

A Denver-based analyst said rumors were circulating that another, larger New York-based hedge fund could be in a similar situation.

"I think the[re]'ll be some more stories emerging around [Amaranth]," said John Kilduff, an energy analyst at Fimat in New York. "We're waiting to see who else is getting taken away in the ambulance."

Natural gas prices dropped near 12 percent last week and have fallen roughly 20 percent since the start of the month as an anticipated active hurricane season in the Gulf of Mexico has so far failed to materialize.

Amaranth has $7.5 billion in capital under management, according to Reuters.

Amaranth's reported loss comes on the heels of MotherRock L.P.'s closure last month after that hedge fund suffered major losses in the natural gas market.

MotherRock had $430 million in assets under management at its height, according to an earlier report in The Wall Street Journal.

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