Orwell Currency Alpha Is Ready To Be Launched
Online, March 24, 2012 (Newswire.com) - Orwell Capital, a UK based fund manager, is launching two absolute return funds in the second quarter of 2012.
The SICAV funds, Orwell Currency Alpha I and II, aim to generate a very consistent positive returns through a systematic investment strategy using a proprietary analytical model to select investment opportunities on G10 currency pairs through spot trades.
Investment decisions are made by the model, which identifies market trends early, these typically last from a few days to a few weeks. This is a key differentiator as investments are made on factual market behaviour, whereas most Forex managers use either fundamental analysis to predict the market or use high frequency algorithms.
The Orwell Currency Alpha funds have a highly uncorrelated performance when measured against both the wider market and competing Forex funds.Investor's capital is systematically protected through a dual mechanism, firstly by placing stop losses on all trades.
Secondly at portfolio level, the exposure and leverage of each trade is optimally adjusted to minimise mathematically the portfolio's volatility. This is achieved through a non parametric convergent algorithm that analyses the cross correlation on the resulting portfolio.
The result of both trade selection and this highly sophisticated risk management is a very low volatility, extremely liquid, uncorrelated Forex strategy delivering consistent results. This is suitable to investors seeking security and liquidity on a pure asset class without a predefined investment horizon.
The Investment style, therefore, is unemotional as opposed to "gut-feel" investment, is not fundamental, so it does not try to predict the future, is not high frequency, so it can ride trends as long as they last, so low to nil correlation to other markets or to a basket of other Forex strategies such as HFR (hedge fund Forex index).
Orwell Capital has an experienced team of two investment professionals with a combined 35
years of market experience in both cash/treasury management and Forex trading, so bringing in depth knowledge of how to meet the requirements of capital protection and currency market behaviour.
In current markets, given the increased demand from investors, Orwell Capital has decided to wrap the strategy in a Luxembourg SICAV devoted only to professional investors and eligible counterparts.