Henderson Global Announces Forex Hedge Fund
The British hedge fund manager will be launching a forex hedge fund in the first half of 2009. The fund will be targeted towards institutional investors and will trade based on quantitative metrics. The fund is expected to invest in G10 currencies and potentially emerging market currencies. The traders are reportedly acquisitions from Fortis. The full article can be found here. Continue reading
NFA Compliance Rule 2-29 is important right now for those commodity pool operators and commodity trading advisors who also trade in the spot forex market. If the CFTC approves a rule adjustment by the NFA (see NFA Announces New Forex Rules), such CPOs and CTAs (who are NFA members) will need to make sure that all of their activity with regard to their forex trading activities conforms to the requirements of NFA Compliance Rule 2-29.
NFA Compliance Rule 2-29 is also important because the CFTC is expected to propose rules requiring managers who trade in the Forex markets, and who are not regisitered as CPOs or CTAs, to register with the CFTC. In the event such registration rules go forward, it is likely that such Forex managers will need to follow Compliance Rule 2-29. This article details the important aspects of this rule. Continue reading
Many forex managers use a product called a managed forex fund, which is the equivalent to a mutual fund hedge fund. In a “managed forex fund,” the manager will invest the assets under the POA with the forex dealer member in the managed fund. The a trader or traders for the forex dealer member will then manage the pool of assets. Typically the forex dealer member will receive both a forex management fee as well as a performance allocation. Many managers will then charge a management fee and a performance allocation (or only one or the other) to the underlying clients. Continue reading