What’s the difference between a managed account vs mutual/hedge fund?
When you purchase a mutual or a hedge fund, you’re purchasing a fractional share of a large pool of assets. In this situation your funds co-mingle with thousands of investors. You don’t actually own the underlying securities. You don’t have your own cost basis which is the price at which you purchase a particular security. A managed account is yours alone. It holds only your assets, is traded solely for your benefit, and allows you to have your own cost basis.
How do I view my account?
Accounts maybe viewed as your own segregated account. You can view your account directly by using your personally defined password. You will note fluctuating performance which is the nature of active investing, with the month – month and year – year performance results being the ones to watch.
Is my account going to achieve the best performance?
All accounts traded by us receive the same attention. The same trades being placed are identical for all accounts, therefore the performance of all accounts should be the same. Results stated as hypothetical are just that. Many determinants come into play in the markets real-time and average leverage has been adjusted down. Every investor will have in their heads a hurdle rate of expectant performance based on the opportunity cost of their capital. This figure should be reasonably less than any hypothetical performance demonstrated.
Why should I consider Alternative Investments for my portfolio?
An expanding universe of these firms have provided excellent investment returns at preferable volatility levels to traditional equity investments regardless of global economic considerations. The investment returns generated from alternative investments often have low correlation to the overall equity market returns. And they can potentially provide a hedge to your portfolio in times of crises. These features are particularly beneficial during times of extreme stock investor optimism and during the bear markets that follow.
What are your fees?
Our fee depends on our relationship with each managed account or trading systems provider. Where FX Capital Management Limited is the trading agent/managed account provider it may charge a transaction fee (per round trip lot) and/or incentive fee, the investor kept fully informed. We may receive a referral fee for accounts opened with the listed providers. Investors pay no fees to us where we have a referral relationship only.
Why trade the spot foreign exchange (forex) markets?
Currencies offer many opportunities for an investor to capitalize on a country or regions’ perceived economic, political or environmental strength or weakness as well as their interest rate differentials. With their unequaled liquidity and strong trend characteristics over decades the forex markets should not be overlooked by any serious investors.