Hedge Fund Crushed by Swiss Franc Draws SEC Fine for Disclosures

Marko Dimitrijevic, who shut down his multibillion dollar hedge fund firm Everest Capital due to a disastrous bet on the Swiss Franc, was sanctioned by U.S. regulators over allegations that investors received misleading disclosures about the wager’s massive size.

Dimitrijevic, 60, had told clients that he wouldn’t take concentrated positions in single geographic regions after he incurred huge losses in Russia in 1998, the Securities and Exchange Commission said in a Thursday order. But he then made a substantial bet against the Franc, a position that at one point accounted for more than 900% of one of his ...