FX Hedge Fund to liquidate currency fund

US-based K2 Advisors has announced closure of its signature Active Currency Fund as one of their key portfolio managers leaves

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.

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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.

 

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