From Bruce Krasting: One
of the biggest leveraged hedge funds in the world got hit with a 2×4 during the
4th Q. This fund has a mixed bag of assets, but was heavily exposed to big FX
positions.
The fund made a big “bet” recently when they went short
EURYEN. This turned sour in a very big way; the EURYEN moved an incredible 14
big figures against them in just 60 trading days.
Street players, who know of this currency spec, refer to it
as a “Size” position. At the end of Q3, it came to a lumpy short $40B. There
were rumors that the fund added to the short during the Q (not confirmed yet).
But even if the book was kept static, the mark-to-market loss comes to $5+B.
That’s serious money to anyone…..
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