State Street Global Advisors (SSgA), the largest institutional fund manager in the world, has launched its first absolute return currency fund.
Chris Woods, CIO of Hedge Fund Strategies at SSgA, said: "We continue to see a growing interest among existing and new clients in the equity market neutral strategies that we offer. With the launch of this new absolute return currency fund, we look to provide institutional investors, including pension funds and hedge fund-of-funds, with yet another investment alternative to create a well-diversified portfolio."
The new fund is aimed at funds of hedge funds, private banks, family offices and institutional investors globally.
The SSgA Absolute Return Currency Fund, Ltd.'s investment objective is to achieve capital appreciation through an actively managed portfolio of currencies. The fund will aim to seek profits by correctly forecasting exchange rate movements and changes in exchange rate volatility using sophisticated quantitative modelling techniques.
To capture these profits, the fund will take carefully balanced long and short positions in currencies including the U.S. dollar, Australian dollar, Canadian dollar, New Zealand dollar, Japanese yen, Euro, British pound and Swiss franc, using over-the-counter (OTC) forward foreign exchange contracts, OTC options, and futures.
The fund, which is domiciled in the Cayman Islands, will be co-managed by Paul Duncombe, global head of currency management and his team, and by Woods.
SSgA's Existing hedge fund strategies include US Equity Market Neutral, Europe Equity Market Neutral, and Japan Equity Market Neutral, managed by State Street Global Advisors' dedicated Hedge Fund Strategies Group, led by Woods.