Citigroup Loss Began With Bad Lira Bets

The video discusses the Chua hedge fund's risky investment strategy, focusing on their significant bets on the Turkish lira. Initially involved in market derivatives, the fund expanded into interest rates and foreign exchange derivatives. In August, the Turkish lira hit an all-time low due to tensions between Turkey and the US, and inflation in Turkey, leading to substantial losses for the fund. The video also touches on the challenges of shorting the lira and the impact of local elections.

How did the hedge fund's strategy change over time?

What challenges did the hedge fund face regarding shorting the lira?