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Hedge Fund - Everest Capital Closing Fund after Wrong Bet on Swiss Franc

Marko Dimitrijevic, a hedge-fund veteran known for his aggressive gambles on emerging markets is shuttering his flagship fund – Global Fund with $830 million, because of sudden jump in the value of Swiss Franc.  Mr Dimitrijevic, who grew up in Switzerland, had bet in place that the Franc would fall.  From its founding in 1991 through last month, the Global Fund earned an average annualised return of 12.3%, after fees.

Mr Dimitrijevic has experienced dramatic swings before on emerging markets bets.  In 1998, his funds took losses from investments in Russian Bonds and Latin American Stocks.

In 2013, Global Fund gained 41% as he pivoted toward stocks in the U.S. and Japan, where Tokyo shares ended the year at a six-year high.  The firm also bought up sectors such as Japanese real estate and US bank stocks, while betting against the yen and some retailers.

In an interview with The Wall Street Journal about his 2013 performance, Mr Dimitrijevic said that he believed US, Japan and the Middle East are the places to be and that economies with strong trade ties to the US should continue to benefit from low interest rates.

Reference

MarketWatch, Rob Copeland, 2015-01-18, "Everest to Close Fund after Losses on Swiss Franc"