Two former FX Concepts executives have launched a new hedge fund backed by China's sovereign wealth fund.
Bob Savage and Ron DiRusso's new venture has been in the works for almost a year, during which time FX, once the world's largest currency hedge fund, imploded.
The new venture, CCTrack Solutions, is a multistrategy hedge fund platform that targets institutional investors in North America, Europe and the Asian markets. According to the firm, the new platform “will be a quantitative provider for FX overlay, risk parity and alpha generation from short-term trading to relative-value skew positioning in global liquid markets covering FX, commodity, bond and equity and futures.”
DiRusso, who serves as CIO, said: “With CITIC Capital as our major shareholder, we believe CCTrack is strongly positioned to be marketed to Chinese and regional clients, on top of the pension funds and endowments in North America and Europe, whom we have established longstanding relationship with.”
Savage, CEO, added: “The new fund will combine short-term trading models with relative-value options strategies. The traditional carry and trend daily trading models will also be involved in providing FX Overlay. The risk parity approach will provide a base-line of beta returns to clients as well. We see it as an excellent time to launch this multi-strategy solution as the field of competition has narrowed considerably, providing significant opportunities to serve clients.”
The deal between CITIC and Savage and DiRusso was done without FX founder John Taylor's knowledge. The split between Taylor and his former chief operating officer and co-chief investment officer was said to be acrimonious, with Taylor unhappy about Savage's role as firm spokesman during its collapse. FX filed for bankruptcy in October.