New York (HedgeCo.net) – While many of the world’s top hedge funds struggling in 2015 as global equity markets have struggled to gain and keep traction, one hedge fund that focuses on currency trading is turning in a great performance.

Quaesta Capital AG is up 21% on the year through early November and that led to the fund being featured in a recent article from Bloomberg. The Zurich based fund manages approximately $420 million in assets and its strategy is somewhat unique. Rather than making directional bets on one currency against another, the fund earned their returns by betting on increased volatility in the world’s currency exchange rates.

With so many actions being taken by central banks this year, the strategy has worked extremely well. The actions started in January when the Swiss National Bank removed a cap on the Franc and continued when the People’s Bank of China devalued the yuan in July. Even the Federal Reserve Bank here in the states has added to volatility, even though it hasn’t made a rate change this year. By not taking action while most people expected them to make a move to raise rates in 2015, the Federal Reserve Board has contributed to the volatility.

Rick Pendergraft
Research Analyst
HedgeCoVest