Diego Megia raised $1.5 billion this spring and bet interest rates would go down. It backfired.

Diego Megia's $9 billion hedge fund, Taula Capital, has suffered a 12.8% loss since launching its TSO fund six months ago, with a 12.2% decline in September alone, according to two people familiar with the matter. The fund, which raised $1.5 billion in March and began trading in April, employs a concentrated strategy that made a large bet on European interest rates going down. Backers cannot redeem their capital until next spring. Taula declined to comment.

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