Miami-based Everest Capital is closing six out of its seven remaining hedge funds owing to bets on the Swiss franc that backfired as Swiss National Bank (SNB) removed a cap on the currency’s value against the euro.
The move by SNB, which led Swiss franc’s value to soar more than 30% versus the euro, resulted in huge losses for Everest Capital’s $830m Global Fund in a single day’s trading triggering its closure.
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Though the other funds were not as exposed to the Swiss franc as the Global Fund, the firm aims to close them as well at the end of the month, as redemptions have been high.
The only fund to be retained is the $570m emerging market fund.
Everest Capital, founded in 1990 by Marko Dimitrijevic, reportedly managed over $3bn overall at the end of December.
