Hedge Funds

Everest Capital falls victim to Swiss franc, shutters largest fund: Report

People queue outside a currency exchange office in Geneva, January 15, 2015. The Swiss National Bank scrapped its cap on the franc on Thursday sending the safe-haven currency crashing below the 1.20 per euro floor it set over three years ago.
Pierre Albouy | Reuters

Switzerland's unexpected decision to allow its currency to float freely once more against the euro may have claimed another victim—Everest Capital's Global Fund.

Bloomberg News, citing a person close to the firm, reported Saturday that Everest's $830 million fund, its largest, took a bath after the Swiss National Bank unyoked the franc from Europe's single currency this week. The Miami-based firm is run by Marko Dimitrijevic, a hedge fund veteran who has a long history in turbulent emerging markets.

The SNB's decision to remove the three-year-old peg, a legacy of Europe's debt crisis, left a number of financial firms reeling. One of the worst hit was retail currency trading firm FXCM, which was forced to take a $300 million lifeline from Leucadia National. Major Wall Street banks like Citigroup, Deutsche Bank and Barclays also took a hit.

As recently as last January, the European Central Bank ranked FXCM as the world's third-largest retail foreign exchange broker.

Reached by CNBC, a representative for Everest Capital declined to comment.

Bloomberg's full report can be found here.

--CNBC's Kate Kelly contributed to this article.