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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (11523)	2/10/2015 8:33:25 AM
From: Goose94	Read Replies (1) of 203032

Gold: The Globe and Mail reports in its Tuesday edition Sprott has abruptly closed one of its hedge funds after Switzerland's decision last month to drop its euro currency peg. The Globe's Sean Silcoff writes Sprott Absolute Return Income Fund, launched in 2010, had $21-million in assets under management. It had just enjoyed a strong 2014, generating an 11.6-per-cent return. Disaster struck Jan. 15. On that day the Swiss National Bank abandoned its policy of maintaining a minimum exchange rate of 1.20 Swiss francs to the euro, after repeatedly affirming its commitment to hold the exchange rate floor of one of the world's safe-haven currencies. The move spelled disaster for the Sprott fund. Its managers had staked 10 per cent of the fund's assets selling a euro-Swiss franc put, a move that depended on the Swiss central bank holding to the currency peg. The Swiss bank prompted the country's currency to spike 15 per cent in value, forcing the fund managers to cover their position at a massive loss. By the end of January, the fund's assets under management had fallen by 17.8 per cent over the month. Sprott closed the absolute return fund on Jan. 30 and said it would return investors' remaining capital.

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