If you have suffered significant investment losses as in the Everest Capital Global Fund resulting from the recent surge in the Swiss Franc, you may be able to recover your losses through NFA arbitration, securities litigation or commodities litigation.
On January 15, 2015, the Swiss National Bank made the decision to decouple the Swiss Franc - one of the world's most stable currencies - from the Euro and remove the artificial ceiling the bank had placed on it to prevent the currencies appreciation. This decision by the Swiss National Bank came as a complete suprise to brokerage firms and FX traders, which had a dramatic impact on the currency markets.
After the bank's decision, the Swiss franc surged against the Euro and US dollar. While holders of Swiss francs enjoyed the appreciation in value, many current traders, investors, brokerage firms, and hedge funds suffered significant losses. Some hedge funds are reported to have suffered severe investment losses, or have closed as a result of this development. According to news reports, the Everest Capital Global Fund was among the hardest hit funds.
Accordingt to news reports, Everest Capital has made the decision to close its flagship fund - the Everest Captial Global Fund - following severe investment losses as resut of the recent jump in value of the Swiss Franc. According to reports, the fund managed $830 million in assets under management as of December 31, 2014.
Everest Capital (based out of Miami, Florida), will constinue to manage several funds with approximatley $2.2 billion in assets. The Everest Capital Global Fund - the firm's oldest fund - was betting that the Swiss franc would decline, when it in fact surged as a result of the recent decision to lift the currency cap by the Swiss National Bank. According to their website, the Everest Capital Global Fund's is described as combining "top-down and bottom-up fundamental approaches to investing in developed and emerging markets. The strategy seeks to exploit longer term growth opportunities and investment themes, combined with opportunistic trading and hedging positions and invests principally in equities, but may also invest across other asset classes such as currencies, commodities and debt."
Generally speaking, investing in currencies or engaging in foreign exchange trading (FOREX) is volatile and carries substantial risks. FOREX trading or investing is generally considered speculative, and investors can suffer significant investment losses in these investments. FOREX trading and investing is generally not suitable for those who are investing their retirement funds. Brokers or other investment advisors that recommend investors invest in FOREX trading vehicles such as a hedge fund, currency fund, or other managed currency investment may be able to recover their investment losses through NFA arbitration or commodities litigation if that recommendation was unsuitable.
In addition, FOREX fund managers have a fiduciary duty to fully disclose the risks of the funds, and to place trades within the approved trading strategy the fund disclosed to investors. FOREX funds or their fund managers may be held liable if a breach of these duties took place.
If you have suffered investment losses in the Everest Capital Global Fund, please contact Kons Law Firm at (860) 920-5181 for a FREE, NO OBLIGATION consultation to discuss your legal rights.
Kons Law Firm represents investors nationwide in NFA arbitration and commodities litigation matters. To learn more about the Firm’s securities and commodities litigation and arbitration practice, please visit www.investmentfraudattorneys.com
