Swiss franc episode exposes risky investments

A Swiss chocolate surprise

The surprise move of the Swiss National Bank on 15 January to abandon its cap on the euro exchange range sent shock waves through global markets and exposed numerous instances of investment funds and trading operations that had made too-risky bets in the currency markets. Among the casualties are the following:

Everest Capital’s Global Fund (the largest fund under Everest management) had to close its doors after losing virtually all of its money (nearly US$830 million). According to a Bloomberg report, the fund had recently bet that the Swiss franc would decline. Alpari, a London-based brokerage

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