From Reuters:
Jan 15 (Reuters) - Currency speculators, particularly large global macro hedge funds with big short positions in the Swiss franc, are staring massive losses in the face after the Swiss National Bank shocked markets on Thursday by removing a three-year-old cap on the currency.The ZeroHedge headline gets closer to the truth:
The move sent the safe-haven franc soaring against the euro and the U.S. dollar at a time when more than $3.5 billion was positioned in favor of franc weakness, the largest such position in more than a year and a half.
Only days ago, the SNB termed the 1.20 francs per euro cap the cornerstone of its monetary policy.
The damage from the Swiss franc's sharp moves comes as a blow for macro hedge fund managers nursing wounds from nearly four years of mediocre performance.
"You have these massive policies which forced all investors to invest with the policy and then they remove the policy and everyone is left high and dry," said Chris Morrison, strategist for the $550 million Omni Macro Fund....MORE
Behold The Carnage: Hedge Funds Most Short The Swiss Franc Since June 2013
