| Managed account solutions provides forex investors |
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Managed account solutions provides forex investors with managed forex product information including Financial Labs and Forex Funds. Financial Labs is an investment firm that applies scientific methods to develop systematic models for trading in global financial markets. Headquartered in Cambridge, Massachusetts, Financial Labs was founded in July 2003 by a team of Harvard University-educated physicists and astrophysicists with extensive training in mathematics and computation. The firm targets absolute returns, and trades a variety of asset classes, including currencies, equities, and derivatives. Financial Labs' scientific approach differentiates it from traditional investment firms. The team's strong research background and objective perspective are key to engineering trading models that consistently benefit from the small inefficiencies present in financial markets. These models range from purely directional approaches to arbitrage and statistical arbitrage opportunities. In addition to identifying profitable trading strategies, the team has developed quantitative methods to minimize transaction costs, control risk, and obtain optimal diversification. Forex Funds is a unique Financial Services Firm that provides its clients with diverse investment opportunities in the Spot Foreign Exchange Market. It is a Commodity Trading Advisor (CTA) and a Commodity Pool Operator (CPO) registered in the United States with Commodities Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). In today's marketplace, the dollar constantly fluctuates against the other currencies of the world. Several factors, such as the decline of global equity markets and declining world interest rates, have forced investors to pursue new opportunities. The global increase in trade and foreign investments has lead to many national economies becoming interconnected with one another. This interconnection, and the resulting fluctuations in exchange rates, has created a huge international market, the Foreign Currency Exchange Market (FOREX). For many investors, this has created exciting opportunities and new profit potentials. Self-trading in the currency markets with risk capital is at best a difficult proposition. Many Forex investors do not have the time, experience or desire to trade in the forex currency markets themselves. The ability to follow market movements 24 hours a day is an essential part of successful trading; the ability to obtain and respond instantaneously to new information provides a trading edge that is beyond the capacity of most busy investors. Managed Accounts are created for investors with risk capital who do not necessarily want to trade on their own. In a managed account you own the currencies that make up your portfolio. Unlike mutual funds or hedge funds which commingle your funds with other investors, a managed account is in your name and all or part of your funds can be redeemed within one day. The managed account only holds your currencies and allows you to follow a cost-basis for each of the currencies in your account. Based on your long-term goals, risk tolerance and time horizon, you can select a professional currency manager with a managed account that can actively manage your portfolio. Whether you're interested in a conservative or aggressive program, you will find the trader who will suit your risk parameters. Alternative investments generally are distinguished from traditional investments by their regulatory structure, high minimum investment requirements, incentive-fee compensation and the diversity of financial instruments and strategies they employ in pursuit of profit. The poor recent performance of traditional asset classes has prompted many investors-including high net worth individuals, corporations, endowments, trusts and institutions such as General Motors and Princeton University-to turn to alternative investment strategies to balance their portfolios and attempt to increase returns in a variety of market conditions. Why, during a period of such uncertainty, are so many investors increasing their commitments to alternative investments? They are seeking strategies that will improve the overall return on their portfolios without exposing them to undue risk. They know that: Unlike traditional investments, alternative investments' performance is not dependent on a bull market environment. In fact, some alternative investment strategies have historically produced strong gains during down market environments. While past performance is not necessarily indicative of future results, an allocation to alternative investments may greatly affect a portfolio 's overall ability to preserve capital and grow wealth. The advantages of a managed currency account as a component of an investor's overall investment portfolio. Ability to Profit in Rising or Declining Markets. The performance of a currency portfolio has historically been non-correlated with that of traditional equity and fixed income investments. Unlike equity and fixed income managers, a currency hedge fund manager employs both long and short positions in its currency portfolio to profit under any market conditions. Global Diversification. The performance of equity and fixed income investments in one country is often highly correlated to the performance of equity and fixed income investments in other countries. As a result, global portfolios composed solely of equity and fixed income investments lack full diversification, even if they are geographically dispersed. Investing in Currencies gives investors access to markets beyond equity and fixed income investments, providing more complete diversification and a reduction in portfolio risk. Reduce Portfolio Risk While Enhancing Returns. When combined with an investor's existing portfolio of equity and fixed income instruments, the Global Currency Program reduces the volatility and risk of that portfolio while enhancing long-term returns. Risk Control. Investing in currencies incorporates disciplined risk control procedures in order to limit risk and achieve the smoothest possible growth in its investors' account value. Leverage is used with strict money management methodology and stop-loss orders are always in place. Investors in currencies are therefore able to achieve a high rate of return with a level of risk control that is not possible with traditional "buy and hold" investments. Although returns are far from guaranteed professional hedge fund managers tend to out perform individual speculators by their deployment of disciplined money management techniques, and systematic trading approaches. Professional hedge funds also tend to use their leverage more judiciously thus avoiding sudden catastrophic losses.
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