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CTA Beacon Breaks Out Currencies as Standalone Pro

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PRINCETON, N.J. (–Seeing stronger demand for forex-focused strategies from investors, Beacon Management Corp. has broken off its currencies portfolio from its diversified futures program called Meka to create a standalone vehicle.

The Beacon Currency program began trading customer accounts on Sept.3, anchored by a US$2 million investment from a single investor.

The program, which is being run as a series of managed accounts, is the direct descendant of a currency strategy the firm has been trading since the early 1980s. But in 1994 the strategy was absorbed in the firm’s Meka and Meka-MV diversified programs, which currently have US$161.7 million in assets.

Fees for managed accounts in the currency program are contingent on how much cash an investor allocates to the strategy. The stated minimum for starting an account is US$2 million. The program aims for mid-level returns with annual volatility of 10%.

Meanwhile, investors in the diversified Meka and Meka-MV programs will continue to get the same exposure to currencies they had previously.

“This has been an excellent time for CTAs, and there have been two requests we have been getting from investors. They want a currency program. And, they want an interest rate program,” said John Fryback, principal. “This answers half that demand.”

Beacon also plans to start a standalone interest-rate-futures trading program.