Hedge Fund To Use OTC Derivatives
Futures Plan, the first hedge fund to be launched by IFX Investment Management, will use over-the-counter foreign exchange options. Christopher Cruden, head of managed investment products in London, said the new global fund will have four fund managers, three of which will invest solely in foreign exchange products and one which will invest in fx and fixed income instruments. The fund will start trading in a few weeks and Cruden said it is targeted to raise approximately EUR50 million (USD50.49 million) by the end of next year.
Shares in the fund are being sold to retail investors through a German-based distributor, Cruden said, although he would not identify the German firm. IFX Investment Management will launch similar funds in the future, but there are no concrete plans for a second fund at this time, Cruden added. Futures Plan will use leverage of three to five times the size of the fund and target an annual return of 10-15%.