2. Currencies as an Asset Class
Highly Liquid - Daily turnover in the FX markets reached $5.3 trillion according to a report published by the Bank for International Settlements (BIS)
Transparent - Real time pricing, 24/7 trading and next day settlement
Diversification - Low correlation to other major asset classes
Dislocations Creating Opportunities – Disparity in macroeconomic policy creating greater potential for currencies to trend generating significant
opportunities for trend trading strategies
GLOBAL FOREIGN EXCHANGE STRATEGY
3. Investment Rationale
A Differentiated Approach, The Strategy identifies and exploits nascent trends and looks to exit these trades before they become overcrowded
Real Absolute Return Objective, aiming to protect capital through long and short overall risk exposure, resulting in lower correlation to global
market and hedge fund indices
4. Investment Philosophy
ST Capital Management was founded on the principle that financial markets are inefficient, and that movements of financial markets are the product
of human behaviour that is in a constant state of flux and always changing over time, hence creating opportunities for markets to trend
5. About ST Capital Management
Glen Passingham founded STCM in 2015. His idea, born from his experiences as an Interest Rate Derivatives Broker on the interbank markets, was
to create a company based on trend trading, driven by his belief that markets are not efficient and that uncertainty creates trends
6. Investment Process
Focus on G10 and liquid EM currencies with a total holding of 35 currency pairs
System utilizes a combination of trend detection and breakout recognition
Proprietary portfolio construction incorporating enhanced modern portfolio theory utilized to determine optimal allocations
Money management discipline employed to generate entry/exit points
7. Risk Management
The long term success of any trading system relies heavily on the risk management process utilized in the implementation of the strategy
The Global Foreign Exchange Strategy implements a sophisticated risk management system that takes into account the price, size and volatility of
the currency pairs traded
On a portfolio level, account risk is monitored on a daily basis
During drawdowns the system reduces market exposure by scaling back leverage and position size
8. Performance and Peer Analysis
Past performance is no guarantee of future results.
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AxisTitle
NAV 2015
ST Capital Mgt
Barclay Index BTOPFX
9. Barclay BTOP FX Index
The BTOP FX Index seeks to replicate the overall composition of the currency sector of the managed futures industry with regard to trading style
and overall market exposure. The BTOP FX Index employs a top-down approach in selecting its constituents. The largest investable currency
trading programs, as measured by assets under management, are selected for inclusion in the BTOP FX Index
For 2015 there are 11 funds in the Barclay BTOP FX Index. To see the complete list of constituents, please click on the link below
http://www.barclayhedge.com/research/indices/btopfx/
