London-based currency manager The Cambridge Strategy has opened their Global Emerging Markets Alpha Programme to external investors.
London-based currency manager The Cambridge Strategy has opened their Global Emerging Markets Alpha Programme to external investors.
The programme joins their existing active currency programmes that have been in operation since April 2004.
The programme has been trading since February 2008, but is only now being opened up to external investors. It returned a performance of 10.97 per cent in its first 12 months of trading, and is up 14.18 per cent for the four months January to April 2009.
The objective of the programme is to provide long term capital growth with consistent, positive absolute returns, targeting an annual return of 18 per cent.
Russell Thompson, The Cambridge Strategy’s chief investment officer, says: ‘We are extremely excited to be bringing this product to the market as it combines Cambridge’s recognised emerging markets expertise with our exceptional, cutting edge risk management techniques. This product should provide investors with genuine alpha potential moving forward and is uncorrelated with the underlying asset markets, providing diversification and risk mitigation to investors’.
The programme aims to profit from short and medium term moves in global emerging markets’ currency pairs. This is achieved by employing their systematic approach, designed to perform across diverse market environments and combining two types of proprietary trading strategies: a systematic technical strategy and a systematic fundamental strategy.
The Cambridge Strategy believes that long run success is achieved through successful mitigation of downside returns, with risk controlled at the portfolio, strategy and individual trade levels. Tail risk is managed utilising omega functions to mitigate downside event risk while a daily VAR limit is enforced at both the aggregate portfolio and sub-strategy level.
