The Board of FX Concepts has announced that the company will wind down its investment management business over the next few weeks. Assets at the firm have dropped to levels that can no longer sustain the business. The Board has concluded that it is in the best interest of the firm’s investors to conduct an orderly wind down of open positions, close its funds, and hand back any remaining mandates to clients. The firm remains in the newsletter and FX overlay advisory business and continues to investigate its options for the future.
We have been seeing a number of managers lower their management fees from 2 to 1%. Please add your comments regarding whether you think this is an industry trend or a temporary move to counteract rather flat to negative performance the managed futures industry has experienced over the last two years.
We have posted the paper Sortino: a ‘Sharper’ Ratio by Thomas N. Rollinger and Scott T. Hoffman of Red Rock Capital. They make an argument that Sortino is a better risk-adjusted return ratio than the Sharpe Ratio because it uses downside deviation rather than standard deviation as a measure of risk.
It is worth the read and the complete article can be viewed HERE