ABN Amro Asset Management has added two new members to its currency team as investment in currencies grows.
Murali Menon has joined as quantitative researcher from ABN Amro Financial Markets where he was a software developer in the Osiris project, a fixed income exotics trading and risk management platform. Menon’s primary focus will be the research and design of trading models and portfolio risk management techniques.
Matthew Farrell has also joined as assistant currency manager and will be involved with the implementation of the currency team’s risk driven portfolio strategy, portfolio maintenance and compliance monitoring. He started his career in hedge fund operations with technology company GlobeOp Financial.
The currency team has grown by a total of four members since July this year including the appointments of Paul Gray as senior currency manager and Michael Victoros as FX global product specialist. The expansion reflects ABN Amro’s experience and success in managing currency, the company says, as demand from institutional investors for more hedged international exposure continues unabated.
This year, the team has won three absolute-return currency mandates and now manages over $1 billion in absolute return currency products with a variety of risk profiles. The team’s flagship fund, the ABN Amro Currency Fund, has achieved a gross performance of 9.65% and net 9.24% for the third quarter of 2006. In addition, the team manages over $31 billion in active currency overlay mandates.
Pierre Lequeux, head of currency management says, “The ongoing expansion of our team and the new inflows reflect the success of our currency capability and our experience in managing the asset class for our clients. This strong performance, despite the market sector’s poor performance in general, is largely explained by our rigorous investment philosophy.
“Currency as an asset class is coming more and more into the spotlight, with investors actively seeking alpha from the currency markets. Since we started managing currency 15 years ago, we have seen the market evolve substantially, and our team has grown ahead of it.”