Millennium Management, one of the world’s biggest hedge funds, made tens of millions of dollars when Egypt allowed its currency to weaken after a successful bet by one of its senior traders, people familiar with the matter said.
Naveen Choppara, who joined Millennium in Dubai last year, wagered that Egypt would allow the devaluation in order to stave off an economic crisis, according to the people, who requested anonymity as the details aren’t public. When the pound tumbled 38% on March 6 after the country’s central bank introduced a record interest-rate hike, he made a profit of about $40 million, some of the people said.