US-based K2 Advisors has announced closure of its signature Active Currency Fund as one of their key portfolio managers leaves the organisation.
The Connecticut-based firm decided to close the six-year-old Active Currency Fund, the first specialist currency fund of funds when it launched in 2006, after the manager resigned. It will liquidate the $22 million fund and return money to investors; in its place, K2 plans to launch a macro fund of funds that will include currency managers.
The Parker Index measures the performance of currency managers, data for the month of March shows FX funds perfumed poorly. The index reported a -1.19% return for the month of March 2012.
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The K2 fund managers are due to launch their new fund of funds on 1st May, however one of their loyal investors, the $3.1 billion Ventura County (California) Employees’ Retirement Association, will redeem its $10 million commitment to the fund. The pension fund said it expected to get $8 million back.
Since the credit cries new participants such as pension funds have been exploring investments in FX. Equities lost over 50% of their book value with banking stocks suffering the most.