The Malta-based boutique FX broker Cresco Capital Markets Ltd, (Cresco FX) has today announced that it has been appointed execution broker for the Premium Alpha Global Macro Fund which has a target of $500 million in Assets under Management (AUM), according to an official corporate press release.
Regulated by the Malta Financial Services Authority (MFSA) and catering to institutions and professional traders -Cresco FX described the Bermuda regulated fund as operated by the investment advisor VATAS Asset Management Ltd, the Maltese alternative investment firm specializing in asset management and the development of investment strategies.
According to the press release issued by Cresco FX, the investment objective of the Fund is to achieve an above average capital growth through investment in Spot Foreign Exchange Markets (G10 and G10 crosses) and exchange traded derivatives.
Target of $500 Million AUM
The new VATAS fund is positioned to target High Net Worth investors, Family Offices and Fund of Hedge Funds(FoHFs) in order to reach its target AUM.
Serdar Vatanperver, CEO of VATAS Asset Management Ltd. said, “We are proud and looking forward for the close collaboration with Cresco FX and Premium Alpha Global Macro Fund.”
According to information on the VATAS corporate website, its milestones include:
- 2004 – Establishment of VATAS Anlageberatung GmbH in Hamburg, Germany
- 2009 – Establishment of VATAS Brokerage GmbH in Hamburg, Germany.
- 2009 – Establishment of VATAS Management GmbH in Hamburg, Germany.
- 2010 – Establishment of VATAS Group AG in Zürich, Switzerland.
- 2012 – Establishment of VATAS Asset Management Limited in Valletta, Malta.
- 2012 – Approved and authorized for finance portfolio management by Malta Financial Services Authority as Category 2 License. (Investment Services License Category 2).
Forex Magnates reached out to VATAS staff and management to confirm what the total amount of AUM currently stood at for their existing funds, such as its FXΩ2 (Forex Omega 2) Fund, and the new Premium Alpha Global Macro Fund, as the current amounts under management might not yet be public information -we were unable to ascertain the figures.
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Nonetheless, a target of $500 million for an FX fund would make it a medium-size fund (to medium-large) if its target could be reached, whether calculating such assets as cash or as notional funds using partially funded accounts via the use of leverage to combine a cash deposit with a notional deposit to arrive at a nominal amount, which can be standard in such funds (depending on minimum account sizes and minimum funding percentages). The fund is described as regulated by the Bermuda Monetary Authority, as per the press release.
Premium Alpha – Global Macro Fund
Derek Mayne, MD of Cresco said, “We are delighted to be working with the Premium Alpha Global Macro Fund. The team at Cresco FX has worked very hard and it has paid off. We believe our bespoke approach separates us from our competitors and will add value for our clients and that our options for segregation provide additional protection for the fund’s investors. The liquidity team, led by Peter Laursen, will now be working closely with the Fund to ensure best execution and that the feeds are suited for the strategy.”
Forex Magnates’ reporters reached out to Mr. Mayne, who explained his company’s offering to funds as an accelerated entry to access prime brokerage services, which could normally take firms months to set up. Cresco has low costs and is able to pass on savings that would normally be included as additional costs directly with a larger prime broker, as explained by Mr. Mayne during the call.
This includes higher leverage across the board and low-cost per million traded, and can be setup through various levels of security for customer funds segregation, omnibus account setup and other tri-party agreements.
Cresco FX Enters Execution Brokerage for Funds and Institutions
Mr. Mayne said to Forex Magnates’ staff during a phone interview, with regards to its expectations of this news, “As Cresco FX commenced business Sept 1 this year; these types of funds represent our core business. With the target AUM of the Premium Alpha Global Macro Fund, it will represent a significant portion of our volumes in the first six months of business. We’ll continue to target these types of funds with bespoke offerings and expect more to follow.”
Efficient business models providing bespoke services with low-cost structures have been increasingly competing on price or leveraging their structure to resell liquidity that would otherwise be priced more expensively or more difficult to access initially, as mentioned above.
This is changing the barrier to entry for small-to-medium size firms that might otherwise find difficulty in establishing prime brokerage and related agreements with large providers directly(such as ABN Amro, Rabbobank, Citi, Barclay’s,etc.).
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