Former Morgan Stanley (NYSE:MS) executive, Thiago Melzer, is set to close his Brazilian hedge fund, Upon Global Capital, following a series of challenges including wrongway bets and rising double-digit interest rates in Brazil. The latter has been driving Brazilians towards high-yielding bonds. The decision comes as the firm grapples with its worst record month, despite efforts to mitigate losses by trimming a short position on the S&P 500 Index.
As of Wednesday, the hedge fund plans to liquidate its 400 million reais ($75 million) under management and refund clients by October 13th. This development marks a significant shift from the previous year when the firm was thriving with a 20% gain.
Melzer's decision to shutter Upon Global Capital follows his contentious departure from Morgan Stanley. His exit from the global financial services firm had been disputed, adding to the challenges faced by his own venture in Brazil.
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