New York-based currency manager FX Concepts announced today that it is launching a new fund based on its FX Volatility Program.
The Volatility Program is an outgrowth of two specific non-directional strategies that FX Concepts has been operating since March 2002. The first is the options component of the Developed Market Currency (DMC) program ($900 million AuM) and the second is a stand-alone options program ($250 million AuM) that was developed for an institutional client a year later, based on the experience of the DMC options program.
Philip Simotas, Head of Investment Management at FX Concepts, commented that “since these programs have provided a negatively or uncorrelated alpha compared to most other currency managers, we saw an opportunity in the market for a standalone options program.”
The Volatility Program will be composed of sub-modules and is currently made up of three distinct non-directional strategies. FX Concepts will retain the right to add new sub-modules and also to dynamically weight these modules based on the goal of maximizing return per unit of risk. The Volatility Program will target an annualized return of around 15%.
John Taylor, Chairman of FX Concepts, said “2004 was a challenging year for most currency managers given the lack of direction through the end of the 3rd quarter. Our options strategies turned in a strong performance, however. The success of non-directional strategies last year has put them increasingly on the map for investors and this should be a good opportunity for those looking to allocate to the FX space without the typical long-volatility return profile of most currency managers and CTAs.”
The Volatility Fund, available in both offshore and onshore versions, offers monthly liquidity and a minimum investment of $250,000. Fees are 1.5% and 20%. In addition to the funds, the Volatility Program will also be offered through a total return swap where clients receive/pay the returns of the program on a monthly basis based on their share of the swap.
FX Concepts is a New York-based currency manager with over $12 billion in AuM in multiple absolute return and currency overlay strategies. For further information please contact:
FX Concepts
Philip Simotas Daniel Szor
Tel: +1 212 554 6832 Tel +1 212 554 6853
Email: psimotas@fx-concepts.com Email: dszor@fx-concepts.com
