THE market turbulence leading investors to flee hedge funds around the world is providing a measure of vindication for one asset manager.
First Quadrant LP, which manages US$11 billion in foreign-exchange strategies, relies on computer models that crunch data such as interest-rate differentials and equity valuations to identify currencies' fair value and determine entry and exit points. The US$1 billion Absolute Return Currency Fund it runs out of Pasadena, California, for John Hancock Investments has returned 9.9 per cent over the past year, topping 13 rivals tracked by Bloomberg.
The success marks a turnaround from 13 months ago, when the fund logged its steepest daily drop on record after the...
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