FX hedge funds rethink strategies as returns fall

Switching gears

fx-gears-1012

For much of the last decade, foreign exchange (FX) trading was a pretty straightforward game.

Currency managers were able to earn healthy returns by exploiting a couple of simple factors: carry and momentum.

The carry trade involves selling a low interest rate currency and investing the proceeds in a higher-yielding currency, while momentum strategies exploit the tendency of FX moves to trend over time.

Data from Deutsche Bank shows carry and momentum strategies earned annualised returns of 7.27%

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: