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Hedge Fund Managers Still Having Nightmares About The Swiss Franc

Sometimes at night, they can still hear the screaming.
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Some psychologists recommend immersion therapy to deal with the problem.

It’s been six months since the Swiss National Bank shredded its long-standing unspoken deal with the investing universe not to let the euro drop like a rock against the franc, and those it betrayed are still not over it. In fact, a lot of them can’t even be near a Swiss franc without having a panic attack or, at the least, breaking out into a cold sweat.

“Investors placed a lot of trust in the SNB until six months ago, but that backfired,” said Constantin Bolz, a currency strategist at UBS Wealth Management, which oversees about $2 trillion of assets��.

“Risk managers have question marks with the Swiss franc. They can’t really model it after the jump early in the year,” said Richard Benson, co-head of portfolio investments at Millennium Global Investments, a London-based currency manager with $13.4 billion of assets.

Doubts over how risky the franc is, coupled with uncertainty over Greece’s debt talks, have deterred Mr. Benson from betting the currency will fall, he said.

Investors Wary of Swiss Franc Bets After Getting Burned [WSJ]


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