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J.D. Perry From Precy Dumlao, Opalesque Asia:
Anticipating crisis driven events will ensure to produce alpha, says J.D. Perry, Managing Director at Baton Rouge, Louisiana – based JP Global Capital Management, manager of the forex fund Troika I Fund.
In an interview with Opalesque, Perry explained that the actual fund – a currency CTA - experienced a slow performance early in the second quarter 2011 due to positioning for the market turn that the managers anticipated as inevitable in the third quarter.
"Specifically, we recognized the USD had been grossly over sold and valued far too low compared to the reality of the economic situations. We recognize that in currencies, there are two points of analysis: first, the underlying economic factors of a specific currency directly and secondly, how it moves relative to another currency," Perry said.
JP Global saw that the U.S. economy was in trouble but also realized that the dollar deterioration was too far in front of economic reality - and the opposite was true of the euro. That is, the European economy had significant problems but the euro itself had been performing as if the economy was on solid ground. But the company knew that was not the case.
The stability of Canada and Australia economies, as well as a few other countries, provided the fund numerous places to produce return. He said, "While we were not in all the countries that show ...................... To view our full article Click here
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