The market disruptions triggered by the coronavirus pandemic have caused huge swings in asset values, potentially throwing many managers’ portfolios out of balance and increasing the risk that they will breach concentration limits or other investment restrictions specified in their funds’ governing documents. A recent SEC settlement order issued against an investment adviser and its chief investment officer is a reminder that the SEC is paying careful attention to advisers’ adherence to stated investment restrictions and risk-related disclosures. The SEC claimed that although the respondents represented to investors that their fund would not take a concentrated position in any region – and that its investments were subject to rigorous risk controls – the fund made a massive bet on a single currency, which was not disclosed to investors or subject to those controls. This article discusses the facts and circumstances of the enforcement proceeding and the terms of the order. See “Former OCIE Private Funds Examiner Explores Compliance Issues Introduced by the Coronavirus Pandemic and Mitigation Tips (Part Two of Two)” (May 14, 2020); and “Key Considerations for Private Fund Investors Navigating the Coronavirus Crisis” (Apr. 23, 2020).