Hedge fund houses set up currency FoHFs to harness lack of correlation
While some FX managers launch funds of funds, others use managed accounts to build multi-manager products
Two of the current trends in hedge funds are merging - currency arbitrage and specialist funds of hedge funds (FoHFs) - as a raft of currency FoHFs is hitting the market.
For some time now, currency hedge fund managers have been extolling the virtues of their strategy - managers say currency funds are uncorrelated to other asset classes and also uncorrelated to other funds in the peer group and, therefore, essential for institutional portfolios.
As institutional investors better understand
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