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Portfolio > Alternative Investments > Hedge Funds

Some FX Funds Ride Up on Volatile Exchange Rates

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NEW YORK (HedgeWorld.com)–Currency trading programs that exploited volatility in the euro/U.S. dollar exchange rate raked in top returns in January, according to data from the Parker FX Index.

Among the 49 funds that constitute the index, Compucom Finance Inc., Zurich, Switzerland, was the top performer, making 9.7% for the month. The other top performers were DynexCorp, Geneva, Switzerland, up more than 8% for the month, and Hyman Beck & Company, Florham Park, N.J., up 7%.

“In January the EUR/USD changed from a trending market to a sideways, high-volatility market,” said Compucom Finance partner Jens Kothes, in a statement. “We were able to take advantage of the sideways action by using countertrend methodologies.”

In terms of risk-adjusted performance, Hyman Beck was the top fund, with a 3.6% adjusted return. It was followed by Jacobson Fund Managers, London, with 2.8%, and Compucom Finance, almost 2.8%, risk adjusted.

The Parker FX Index as a whole returned 0.6% in January, with 54% of its component funds reporting positive performance. Fund returns varied between 9.7% and negative 6.9%. The 49 funds collectively now have more than US$11 billion in currency assets.

Since its inception in January 1986 the index earned 16% on a compounded annual basis. Last year it had its best performance since 1997, thanks to opportunities created by the declining dollar Previous HedgeWorld Story.

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