Nomura, Mizuho Face Losses After Fund’s Failed Trades (Correct)

Nomura Holdings Inc. and Mizuho Financial Group Inc. are facing more than $100 million of potential losses tied to a series of failed stock trades made by investment fund All Blue Capital.

All Blue, led by trader Matt Novak, made a series of wrong-way short bets with multiple counterparties earlier this year and was allegedly unable to settle the trades, according to New York legal filings and people familiar with the matter. Two units of the fund were placed into liquidation in the British Virgin Islands in March, the filings show.

The fund’s inability to settle its bets triggered ...