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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.