Thiago Melzer to Close Brazilian Hedge Fund Upon Global Capital Amid Struggles

Former Morgan Stanley executive Thiago Melzer is set to close his Brazilian hedge fund, Upon Global Capital, due to a series of difficulties, including poor investment decisions and rising interest rates in Brazil. The latter has been prompting investors to turn towards high-yield bonds. This decision comes as the firm experiences its worst performing month, despite efforts to reduce losses by adjusting a short position.

By Wednesday, the hedge fund plans to liquidate its 400 million reais (approximately $75 million) in assets under management and will refund clients by October 13th. This marks a stark contrast from the previous year, when the firm reported a 20% gain.

Melzer’s choice to shut down Upon Global Capital follows a troubled departure from Morgan Stanley, where his exit was mired in controversy, adding to the difficulties faced by his own venture in Brazil.