Alpha Generating Managed Foreign Exchange Strategies

Alpha Generating Managed Currency (Managed FX) is generally considered a sub-set of the CTA (Commodity Trading Advisor) Hedge Fund Investment Management Sector. 

It seeks to deliver superior risk-adjusted growth for investors in a manner that is not correlated to the price movements of traditional asset classes such as equities and fixed income.

Hallmarks of successful Managed FX managers are quantitative algorithmic trading models derived from advanced technical analysis with a qualitative risk management overlay that helps to moderate volatility in times of market turbulence.  

In an attempt to generate positive returns for investors, they provide a useful function to the market generating liquidity for business and international trade while accelerating the price discovery process in an attempt to establish fair market value of a nations currency.

Successful managers in this space tend to display qualities of absolute return driven management, profiting in both up and down markets.  Given the ease by which exposure to one currency can be converted to another and the fact that interest can be earned regardless of one's exposure, managed currency offers unique advantages to the long-short, absolute return driven manager.

Institutional investors in Europe and Asia have long separated currency as a distinct asset class and the trend is now moving into the United States and North America as investors look for ways to reduce portfolio risk as domestic and foreign equity markets grow more closely correlated in an ever expanding global economy.

Media Articles: Alpha Generating Managed Currency Product

Source: Pension and Investments                                        Currency Management: Money Madness                                    By Thao Hua,  March 5, 2007

http://www.pionline.com/apps/pbcs.dll/article?AID=/20070305/PRINTSUB/70308014/1019/TOC

Source: Pension and Investments                                         Cashing in on High-Alpha Currency Strategies                              By Thao Hua,  September 4, 2007

http://www.pionline.com/apps/pbcs.dll/article?AID=/20060904/PRINTSUB/609040730/-1/TOC01

Learn more about the innovative work Bill Dale is doing in the  Alpha Generating Managed Currency Product marketplace