Forex social trading network Currensee, has announced the launch of Currensee Trade Leader Alternative Growth Fund. The fund will be managed using portfolios from the firm’s Trade Leaders strategies. Currensee’s social network allows users to follow and copy trades and portfolios from the firm’s pre-selected strategies, called Trade Leaders. The goal of the fund, is to leverage the Trade Leaders in the creation of a managed fund. Registered as Forex firm, Currensee is licensed by both the NFA and FCA.
In their press release, CEO Dave Lemont stated “The Fund gives investors access to an actively managed portfolio of Forex strategies in a single investment.” He added “This means investors in the Fund can balance their total portfolio across asset classes, including equities, fixed income, commodities and alternatives such as Forex. Because the Fund can go long and short on major currency pairs at different times, it has very low correlation to major equity indices.”
To learn more about the new product and whether Currensee expects more managed FX funds to be launched in the future, Forex Magnates spoke to Asaf Yigal, Co-Founder and VP Product at Currensee.
How will the decision process for which Trade Leaders to follow be done?
The strategy is very sophisticated and selects 15 trade leaders that are performing well in the program and we rate them by our confidence in them and their trading style and how well they have been doing lately, we then allocate part of the fund to them based on these criteria giving more money to the traders that we have high confidence in and have been performing below their average lately and less money to the traders that we have less confidence but have outstanding returns lately.
When is the fund expected to launch?
The fund is already launched and is available for QEPs (Qualified Eligible Participants)
Will the fund only invest in FX?
The fund only invests in FX at the moment and it gives investors a way to participate in this market while knowing nothing about trading.
What types of investors have you received interest for this from, IE private, pension funds etc?
Right now the most interest is from high networth individuals, we also target pension and endowment funds but the sales cycle with them is much longer
If successful, do you have plans to roll out a retail focused mutual fund offering?
When successful we plan on issuing more funds and also offering either ETFs or mutual funds to attract the retail equity investors.
Asaf also added “The basis of this fund is to leverage the Trade Leaders Investment program as building blocks to build more financial products and derivatives of the same product and be able to address different segment of the market. The trade leader program is targeted towards active traders and active investors and the fund is targeting the passive investors.”