Overlay Asset Management, the currency management arm of BNP Paribas, will today launch an innovative fund focusing on volatility in the $3,200bn (£1,958bn, €2,249bn) a day foreign exchange markets.
The fund provides an alternative to the traditional Forex trading directional at a time when the most common strategy, "carry trade, has a strong correlation with stocks and other traditional asset classes.
The launch of the gearbox SingleHedge Fund is part of the expansion strategy of overlap. The Paris-based company, which has U.S. $ 11.3 under management, will soon open an office in London.
If the volatility of trade is relatively common in the capital markets is much less advanced in other asset classes Although the Bank of New York Mellon offers a fund established to consider the "conditions" extreme market in the market currency.
"Although they will not necessarily prevent the Fund from making directional positions in the spot, our idea is to actually trade volatility," said Isabel Rio de Janeiro, investment strategist at the exchange rate. "We expect the fund to show very low correlation with the market ".
The Dublin "highly leveraged" House of Qualifying Investor Fund, primarily to finance the fund managers who have exposure in May, is targeting returns of 20 percent a few years.
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