COMAC Return Investor Money After Swiss Franc Losses

Jan 21 2015 | 8:25am ET

COMAC Capital, a $1.2 billion hedge fund, has started the process of returning client money after the firm lost 8% due a reversal of the Swiss National Bank’s policy to cap the franc against the euro.

The fund took a heavy hit when the franc surged against the euro and the dollar on Jan. 15. The fund, led by founding partner Colm O'Shea, is now reportedly down 10% for the month.

An unnamed source told Reuters that the firm wrote the following to investors on Tuesday: “The SNB decision to abandon the currency floor led to the most significant loss of Colm's career and will have a substantial negative impact on the macro fund and firm.”

The London-based Comac isn’t the first victim of the sudden policy change. Last week, hedge fund manager Marko Dimitrijevic saw its entire $850 million fund Everest Capital Global wiped out.

O’Shea founded Comac in 2006 as a macro hedge fund, trading stocks, currencies, bonds, commodities and derivatives. The firm hit its peak in 2010 when it managed $6 billion. The company’s global macro fund has returned roughly 7.9% since inception.

The company will continue to manage internal capital of roughly $150 million.


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