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Q & A With Dynex Corporation

Company Name:

Dynex Corporation


Opal Asset Management,


Villa Pax, Monaco

Contact Name:

Peter Panholzer

Phone Number:

+377 93 30 57 96

Fax Number:

+377 93 25 44 13


Product Name:

Dynex Currency Strategy

Product Assets:


Total Assets Under Management:


Firm Inception Date:


Number of Employees:


Return Information

Annual Performance














Annualised Performance:


Standard Deviation:


Sharpe Ratio:

(1998: +2.66) +0.94

Parker FX Index Rank as of February 2000:

1 out of 44



In answering below, we refer you primarily to our Web site:

1. How and when did your firm begin?

The Dynex Currency Strategy, developed by Dynex Corporation in 1994, and offered by Opal Asset Management, Monaco, specialises in foreign exchange trading management for banks, institutional clients and high net worth sophisticated investors.

2. Who are the principals of your firm? Please provide a brief background on each.

Dynex’s founder and president is Peter Panholzer. Mr Panholzer was born in Vienna in 1943 and holds a Masters Degree in Engineering from the Technical University of Vienna. Registered since 1974 with regulatory authorities in the US, Canada, the UK (and in Monaco, with Opal Asset Management), he has specialised in currency markets with major brokerage houses in Canada and Europe. After managing a Canadian subsidiary of Woodstock, Chicago (eventually absorbed by Rouse Woodstock and Credit Lyonnais), he joined the Toronto branch of ContiCommodity Services (Canada) Ltd (“Conti”) in 1979. In the same year, he became a Canadian citizen. He has been an offshore portfolio manager since 1981 when he transferred to Conti’s branch office in Lugano, Switzerland. In 1985, Mr Panholzer joined the London Mayfair office of E.F. Hutton and subsequently Refco Overseas London Ltd. To provide management specialising purely in foreign exchange spot trading, he became independent in 1988 and founded Dynex Corporation.

3. Please describe your best trade ever and when it occurred.

The dollar/yen move in May/June 1989 from 134 to 150 was one of the most profitable trades we ever realised. 1989 and 1990 provided indeed most impressive yen moves: from 125 to 160 and from 160 back down to 125, the latter in as little as just five months.

4. What was your most difficult period?

In 1999, when most other currency traders had difficulties as well. Markets displayed greater volatility and fewer trends. At least we have been able to produce a persistent profitable pattern in yearly cycles.

5. What is your outlook about the direction of the JPY, USD and Euro for the remainder of the year?

We are not really this long term oriented. For the near future we expect the dollar to appreciate against both yen and euro.

6. What is your view on emerging market currencies?

They are ‘baby’ markets. We contend that markets develop from ‘baby’ markets to mature markets. Newly opened ‘baby’ markets, not being very liquid and therefore more price-driven by way of a lack of opposing market participants, display easy-to-follow trends. As they become mature and develop a large following, their inefficiencies (ie, their trending qualities) are exploited ‘away’ by professional market players (who usually are willing to join new markets only as they become sufficiently liquid).

Today’s major currency markets (EUR, JPY, CHF, GBP) are mature and are becoming too random for conventional trend-following methods to deliver consistently good risk-adjusted returns. Many Pacific Rim currencies, on the other hand, are typical ‘baby’ markets and behave today quite similarly to the way today’s mature currency markets behaved in the early 1970s. They are therefore still suitable for conventional trend-following methods. The Australian dollar rate (AUD-USD) could be considered a ‘teen-ager’ within this framework of classification.

7. What types of instruments do you trade?


8. Is leverage used? If yes, maximum leverage amount? What is average leverage amount?

We use a leverage of 1:2. On rare occasion we will increase to 1:4.

9. What is the average length of time positions are held?

A day or two.

10. Average number of positions during the month.

We may switch from long to short (and vice versa) about four to five times a month.

Profit & Loss

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