Cambridge Preps Asian Currency Hedge Fund

Nov 29 2007 | 7:59am ET

Asset management firm The Cambridge Strategy is prepping a currency hedge fund derived from its Asian Emerging Markets Alpha Strategy. The U.K.-based firm is planning to launch the fund on Dec. 15 with $10 million in seed capital. 

The fund will invest in all major Asian currencies and avoid illiquid currencies in countries such as Vietnam and Cambodia. Russell Thompson, the firm’s CIO, is the portfolio manager for the new offering, and Encinitas, Calif.-based Ten Asset Management is marketing the fund in the U.S.

The 19-month old strategy is managing some $30 million in separate accounts and has returned 24.33% year to date. Chairman Edward Baker, who until April was the CIO of emerging markets growth equities at AllianceBernstein, said investor demand for the strategy in a fund structure as well as regional interest prompted the launch.

“From a fundamental point of view, it’s still a growing area attracting huge investor interest,” he said, adding that the overall currency markets are inefficient and there is an opportunity to make money through active management.

“These inefficiencies are fairly short term so one has to have that kind of focus and one needs to be very systematic about this. We have an algorithmic approach for identifying signals, which has worked well for us.”

Baker noted that the fund employs both technical and fundamental strategies to the currency markets, allowing it to increase capital to each strategy as dictated by the market. The fund did this in September when it gained 8.25%.

“What we found is that in periods of rising and high volatility, we need to take money out of the fundamental strategy into the technical strategy, which performs best in a higher volatility environment, and September was just the case. We did especially well shorting the dollar and [going] long Malaysian ringgit that month.” 

The Asian Currency fund charges a 2% management fee and a 20% performance fee with a $250,000 minimum investment requirement.

Cambridge also manages the Developed Markets Alpha and Extended Markets Alpha strategies in managed accounts. All told, the firm manages $150 million across its currency strategies.


In Depth

Prominent Hedgie Renee Haugerud Embroiled in Ugly Child Custody Battle

Sep 10 2014 | 2:43pm ET

A high-profile hedge fund manager is caught up in a nasty child custody battle in...

Lifestyle

Full House’s Stamos To Play TV Hedge-Fund Manager

Sep 5 2014 | 4:43am ET

The life of a Connecticut hedge-fund billionaire is coming to the small screen.

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.