Friday, 22 August 2014
Last updated 11 hours 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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note