Program Description
PREMISE: The FXCG Managed FX Program is built on the understanding that inefficiencies can regularly be found in the pricing of currencies in the foreign exchange markets.
LIQUIDITY: The International Forex or FX market is the largest in the world, accounting for approximately $2 trillion in transactions per day. In part due to the tremendous liquidity, the cost of transactions is significantly less than that found in the equity or futures markets.
OPPORTUNITY : The relationship each country’s currency holds in relative value to that of other countries is constantly fluctuating in response to the balance of trade, current accounts, interest rates, governmental policies and more. Inefficiencies occur as major banks, governments and institutions open or liquidate positions in particular foreign currencies causing waves in the global markets.
RISK MANAGEMENT: Since currency markets trade 24 hours per day the gaps in pricing and overnight market risk do not occur as readily as those seen in equity and bond markets. The interaction of large banks and multinational corporations help support smooth transitions in the price trend of currencies. Though there are never guarantees against loss, support tools for risk reduction are more advanced in the currency markets than in most other markets.
Design
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The FXCG Managed FX Program brings together a team of experienced foreign currency traders and managers who employ a variety of strategies. Managers are combined based on their system or strategy as well as their time horizon in an effort to achieve strong returns with minimum relative risk.
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Some strategies are systematic, in that advanced computer models largely direct trading decisions. Most systematic traders use proprietary algorithms that incorporate some form of technical analysis to identify low risk, high reward trading opportunities.
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Other managers use their specialized knowledge in a few specific currencies to identify opportunities.
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Through the use of this multiple manager or sub-adviser model, Tactical is able to offer clients the simplicity of a single account with the benefits of institutional-quality diversification.
Goals
Suitability
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Investors who seek absolute performance returns, not relative to a benchmark or index.
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Investors seeking investments not correlated with stocks, bonds or real estate.
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Investors who prefer paying for performance, rather than for loads.
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Investors who prefer investment liquidity.
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Investors who fully understand and appreciate the risks associated with alternative investments.
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Investors seeking greater transparency in their investments.
Account Requirements
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$100,000 minimum investment (smaller amounts available through Wasatch Capital Investment Group’s pooled account)
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Account Opening Documents (including a copy of valid photo ID)
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Signed Copy of Additional Required Documents
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Signed Copy of Tactical Asset Management Disclosure Documents
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Signed Copy of each page of Client’s Entire Account Application
Forex trading involves significant risks and is not suitable for everyone. No investment should be made into this program without complete review of Due Diligence documents to insure a comprehensive understanding of the risks associated with this particular program. It is highly recommended that you confer with an investment professional prior to investing. The potential for significant risk does exist in foreign currency investing.
Drawdown Analysis
Drawdown Analysis |
Magnitude |
Length |
Recovery |
Peak |
Valley |
(2.89) |
1 |
2 |
Nov-2003 |
Dec-2003 |
(1.83) |
1 |
1 |
May-2004 |
Jun-2004 |
(1.05) |
1 |
1 |
Feb-2000 |
Mar-2000 |
(0.95) |
1 |
1 |
May-2001 |
Jun-2001 |
(0.69) |
1 |
1 |
Jul-2001 |
Aug-2001 |
(0.03) |
1 |
1 |
May-2000 |
Jun-2000 |
Consecutive Gains |
Consecutive Losses |
Run-up |
Length |
Start Date |
End Date |
Run-down |
Length |
Start Date |
End Date |
195.18 |
27 |
Sep-2001 |
Nov-2003 |
(2.89) |
1 |
Dec-2003 |
Dec-2003 |
35.24 |
11 |
Jul-2000 |
May-2001 |
(1.83) |
1 |
Jun-2004 |
Jun-2004 |
14.99 |
5 |
Jan-2004 |
May-2004 |
(1.05) |
1 |
Mar-2000 |
Mar-2000 |
8.14 |
3 |
Jul-2004 |
Sep-2004 |
(0.95) |
1 |
Jun-2001 |
Jun-2001 |
6.34 |
2 |
Jan-2000 |
Feb-2000 |
(0.69) |
1 |
Aug-2001 |
Aug-2001 |
5.19 |
2 |
Apr-2000 |
May-2000 |
(0.03) |
1 |
Jun-2000 |
Jun-2000 |
3.31 |
1 |
Jul-2001 |
Jul-2001 |
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