Tuesday, 6 October 2015
Last updated 1 min ago
Oct 6 2011 | 12:15pm ET
Emerging markets hedge fund Covepoint Capital Advisors suffered its worst-ever month in September on bad currency bets.
The New York-based firm, which was spun off from Bear Stearns in 2008, fell 38% last month. The collapse wiped out the $824 million Emerging Markets Macro fund's year-to-date gains, leaving it down about 25% year-to-date, Bloomberg News reports.
September was easily Covepoint's worst month since its debut in 2005. The fund's previous low was October 2008, when it lost 28%.
"We've always been a volatile fund," Covepoint's Jonathan Taylor told Bloomberg. "Historically, we've made higher highs and we're confident that we'll do so again."
Last month's lowest low was sparked by Covepoint chief Melissa Ko's belief that a third round of quantitative easing by the Federal Reserve would push emerging markets currencies higher against the dollar. But the Fed decided to hold off on any more easing, sending the Mexican peso, Brazilian real and South African rand down by double digits.
May 27 2015 | 2:15pm ET
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