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Benedicte Gravrand, Opalesque London: Despite market turmoil and investor uncertainty, London-based Augustus Asset Managers Ltd’s newly-launched JB Currency Hedge Fund returned 22.33% in its first year (to June 30, 2008). Fund manager Adrian Owens explains how he did it.
Currency can be a very attractive asset class right now, in the wave of de-leveraging, reduced liquidity and risk aversion in other asset classes. Currency is liquid, transaction costs are cheap, risks are easier to manage and it has a low correlation to other asset classes.
The Fund, formally called the JB Currency Hedge Fund – Discretionary Segregated Portfolio, uses discretionary methodologies and techniques to target uncorrelated, diversified returns, and was launched in July 2007. In a further development, the fund joined Deutsche Bank’s FX Select platform and went live on FX Select with the Discretionary Currency strategy on June 10.
Eclectic approach
“I tend to take the majority of my risk within markets like Scandinavia, Australasia, Canada, the UK,” Mr. Owens told Opalesque. “Often the key driver returns is economics [Adrian Owens is an economist by training]. I also put a lot of emphasis on other factors in particular the practical and the technical factors. So the approach is eclectic. The fund tries to create alpha and to identify shifts in the currency valuations.”
Where the money comes from
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