Everest Capital's Global Fund has lost almost all its money after the Swiss National Bank scrapped its three-year-old cap on the franc against the euro, Bloomberg news reports.
The fund, like many others, had a major "carry trade" position on that worked only if the Swiss central bank continued to prop up the euro.
When SNB pulled the plug on support, carry traders experienced massive losses. (SEE:Understanding the Swiss Central Bank Move and Its Implications for the Rest of 2015: A Guide for Dummies) Everest had about $830 million in assets at the end of 2014, according to a client report cited by Bloomberg. That is now all gone, The fund is dead.
I expect more hedge fund bodies to float to the surface in coming days.
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