Bill Lipschutz discusses forex developments in his recent interview.
Bill Lipschutz, the founder of Hathersage Capital Management, is considered to be among the top five of all forex traders worldwide and he has nicknamed the “Sultan of Currencies” to match.
Bill Lipschutz notes how the foreign exchange market has changed over the years, and why the barriers to entry for currency-focused hedge funds are going up, not down.
“Bill Lipschutz notes how the foreign exchange market has changed over the years, and why the barriers to entry for currency-focused hedge funds are going up, not down”
WEALTH TRAINING COMPANY
Bill Lipschutz discusses forex developments and his trading philosophy
Bill Lipschutz: Hathersage trades G10 currency pairs and plain vanilla options on those pairs. A vanilla option gives the holder the right to buy or sell the underlying asset at a predetermined price within a specific timeframe.
“Our strategies embrace one or the other of two basic approaches. They are either: tactical, momentum-driven or strategic, macro fundamental” said Bill Lipschutz. “We are 100% discretionary, highly focused, and uniquely experienced” he added.
Bill Lipschutz said he and his team aim to know everything there is to know about the sector and the specifics of the instruments employed.
“Our strategies embrace one or the other of two basic approaches. They are either: tactical, momentum-driven or strategic, macro fundamental”
BILL LIPSCHUTZ
Bill Lipschutz discusses forex developments and he notes that it is a twenty-four-hour market
“We stay close to the market around the clock, looking for opportunities to apply our decades of experience to both short-term price dislocations and long-term changes in valuation” said Bill Lipschutz.
Bill Lipschutz discusses forex developments and what differentiates his Hathersage Capital Management fund from other forex funds
“We employ a unique portfolio construction technique utilizing positive convexity to initially express trade ideas. Further, we use this concept to optimally manage the risk/reward of our portfolios over the life of those ideas” said Bill Lipschutz.
“I would say it’s quite different from when I started Hathersage. Today’s market favors the strategic over the transactional” – Bill Lipschutz
Bill Lipschutz discusses forex developments going back to 1991 when he found Hathersage
“I would say it’s quite different from when I started Hathersage. Today’s market favors the strategic over the transactional” he said.
“For one thing, liquidity is low. There are many fewer market makers than there have ever been in the floating rate era, the flow of information is highly restricted, and there are fewer experienced sector participants – both on the buy-side and the sell-side” added Bill Lipschutz.
Bill Lipschutz also noted that regarding options market dynamics, there has been a fundamental supply/demand reversal over the last 30 years.
“In the early days of FX options – mid1980s through the mid-1990s – demand drove prices as end-users were overwhelmingly buyers looking for hedges or cheap directional leverage,” said Bill Lipschutz. “By the early 2000s, supply had become the driver as systematic vol selling to enhance portfolio yield across most asset classes became the norm” he added.
But it is no longer having a time edge where Bill Lipschutz discusses forex developments
“There is now virtually immediate dissemination of information. There is no “time edge” that existed for some traders in the past” he said.
“Regulatory reporting requirements are greater than ever before” he added.
