Bankrupt FX Concepts To Sell Intellectual Property

Nov 13 2013 | 9:58am ET

New York-based currency hedge fund FX Concepts has put its intellectual property up for sale in a bankruptcy auction.

The firm, which filed for bankruptcy in October due to poor performance, hopes to raise as much as $2 million on the sale of its quantitative models, historical data and trademark.

Bob Savage, FX Concepts' chief operating officer, told Thomson Reuters that the firm has a potential buyer for its intellectual property—Aktis Capital Advisory, a Hong-Kong based private equity group, which has entered a stalking horse bid of $1 million to $2 million.

The firm will also sell its newsletter business. The sale will take place on November 25.

Founded by John Taylor in 1981, FX Concepts was once the largest currency hedge fund in the world, with peak assets of $14.2 billion in 2007. That figure has dwindled to just $621 million—most of which belongs to the San Francisco Employees' Retirement System, which last month moved to redeem the entire amount.

In announcing the decision to close, vice-chairman Jonathan Clark said:

"Assets at the firm have dropped to levels that can no longer sustain the business. The board has concluded that it is in the best interest of the firm's investors to conduct an orderly wind-down of open positions, close its funds and hand back any remaining mandates to clients."


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...