Zurich-based ACT Currency Partner AG has launched a currency hedge fund focusing on the five most-traded currency pairs.


ACT Currency Partner was founded by Felix Adam in 1992 as Adam Currency Trading, while Kenneth Stenberg joined the firm as Chief Investment Officer in 2003, bringing with him over 25 years of Forex trading experience.


The ACT Currency Hedge Fund follows a strict process-oriented strategy with discretionary inputs, which has resulted in extremely low volatilities for an actively traded fund. 


ACT stated "the success of the trading strategy is a direct result of effectively combining two proprietary models: the ACT Quantitative Model, and the ACT Sentiment Model. "


The quantitative model covers both positioning and momentum trading, and generates clear buy and sell signals based on market price patters, while the sentiment model generates buy and sell signals based on weightings of various sentiment indicators including prevailing market views, technical indicators, option volatilities, IMM and other positioning data, correlations between asset classes, and more exotic factors like full moon and end-of-the-month. 


Since 2003 the strategy has had a net, de-leveraged return of 7.89 per cent p.a.  The volatility has been extremely low, with an annual standard deviation of 2.37 per cent and a Sharpe ratio of 2.67.  ACT's strategy has resulted in 89.47 per cent positive months in the past two years.  


Although ACT has grown significantly in terms of assets under management and number of clients, the essential trading strategy and target market have remained unchanged.


The Currency Fund is looking to attract institutional clients, and has already received over EUR 10 million from various institutions and asset managers. The firm says that major allocations have been received from Swiss private banks and prominent German banks.


The fund continues to welcome new investors on a monthly basis, and is targeting an expected (leveraged) return of at least 25 per cent p.a. 


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