Catching profits from the falling dollar

Several fund managers are taking advantage of the increased interest in currency markets by setting up high-margin currency hedge funds. But before they invest in such products, investors should examine the offerings closely. Julie Dalla-Costa reports.

FUND MANAGERS ARE beginning to take advantage of increased investor interest in currencies by capitalizing on their currency overlay teams to offer higher risk/return currency investments in the form of hedge funds. But some investors are sceptical about what these currency hedge funds have to offer other than an increase in fees.

Gartmore, Barclays Global Investors and GAM have all recently launched currency hedge funds. State Street Global Advisors is planning to do so in the second quarter of this year.

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