Everest Capital’s $830 Million Capital Global Hedge Fund Wiped out Due to CHF Short
- Suffering a wipe out of their largest fund, Everest Capital's Global Fund closes following large losses after being short the Swiss franc prior to Thursday's SNB actions to allow their currency to appreciate.
Among the biggest losers from Thursday’s Swiss franc move are numerous small and large hedge funds. Not surprising, funds with short positions in the franc were especially hit hard, with Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term disappearing to exit positions. Also reported to have experienced sizable losses were hedge funds engaged in providing liquidity to the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, and caught selling francs as the currency rose.
According to a report from Bloomberg, what could amount to one of the larger funds closing down due to being on the wrong side of the trade is Everest Capital Global Fund. The fund was Everest Capital’s largest, with $830 million in assets at the end of December 2014, per client documents. According to a Bloomberg source, the fund was closed after being wiped out on the franc move and losing most of its money due to having taken a large short position in the currency.
Headquartered in Miami, Everest Capital is headed by Marko Dimitrijevic and was founded in 1990. Everest Capital Global had a stated strategy of using “top-down and bottom-up fundamental approaches to investing in developed and emerging markets” to “exploit longer term growth opportunities and investment themes."
Among the biggest losers from Thursday’s Swiss franc move are numerous small and large hedge funds. Not surprising, funds with short positions in the franc were especially hit hard, with Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term disappearing to exit positions. Also reported to have experienced sizable losses were hedge funds engaged in providing liquidity to the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market, and caught selling francs as the currency rose.
According to a report from Bloomberg, what could amount to one of the larger funds closing down due to being on the wrong side of the trade is Everest Capital Global Fund. The fund was Everest Capital’s largest, with $830 million in assets at the end of December 2014, per client documents. According to a Bloomberg source, the fund was closed after being wiped out on the franc move and losing most of its money due to having taken a large short position in the currency.
Headquartered in Miami, Everest Capital is headed by Marko Dimitrijevic and was founded in 1990. Everest Capital Global had a stated strategy of using “top-down and bottom-up fundamental approaches to investing in developed and emerging markets” to “exploit longer term growth opportunities and investment themes."