FX MANAGERS
efficiency of your strategies? Have you already explored to what AUM limit the strategies would allow you to grow to?
AB Liquidity is unlikely to limit the growth of our program since foreign exchange tends to be one of the most liquid of asset classes. In addition, the Program could be expanded to trade a greater number of currencies if required due to a sharp increase in average trade size related to growth in AUM. We believe we can trade up to $500 million in our FX Program without any major changes in infrastructure.
FXTM What is the biggest strength of your team?
AB We view the Foreign Exchange Program’s edge as being: (a) a long record of positive
returns with controlled
volatility; (b) no style driſt; (c) the use of a volatility indicator, which makes trade initiation more selective; and (d) the use of both short and medium term trading modules to enhance the ability to be profitable in various trading environments. Our team is experienced and turnover is low. We have a long
history of working together. My partner and I have traded together since 2001 and this has enabled us to learn from each other and become interchangeable in running all aspects of the company. In addition, two of our staff have been with us since 2004 – 05 and the rest have each been on the team for nearly three years.
FX
coming months as Europe’s economic underperformance weighs
on the
currency. Over the past year, Europe’s economy has contracted while the U.S. economy has grown. But the impact of Europe’s recession on the euro has been muted by the European Central Bank, which has been fairly hawkish relative to Europe’s dire economic circums tances. Te Federal Reserve, by comparison, has been very dovish relative the performance of the U.S. economy. A move in the EURUSD cross would require a shiſt in the stance of one of these central banks and a more hawkish Fed seems the most likely candidate.
FXTM Can you give us your feeling about the move of the EurUsd in the next 6/12 months?
AB Our views enter into only our Discretionary Macro Program since the FX Program is fully systematic. In the DMP, our strongest view at the moment relates to the yen, which we expect to depreciate. While we are not positioned in EURUSD in our discretionary trading, we expect this cross to move against the euro in
FXTM What’s the best advice you would give to traders who want to enter the FX fund management industry?
AB Tere are many ways to get started in this business. I can say that both my partner and I started at major banks and we both believe that this tends to provide an intense and broad introduction to the markets from experienced and highly trained professionals.
FX TRADER MAGAZINE April - June 2013 59
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