Covepoint employs a mix of three trading strategies, and may adjust the Fund’s risk allocations among these strategies depending on market conditions and opportunity sets.
Covepoint actively trades currencies and other liquid asset classes in countries or regions where significant improvement or deterioration in fundamentals, in our view, have been mispriced by the markets. While taking a directional view of markets based on our analysis of fundamentals, we seek to implement favorable risk/return characteristics with optimal position size, portfolio construction, trade entry and exit levels.
Covepoint seeks out relative value opportunities in highly liquid, typically correlated assets that are reacting differently to similar macroeconomic forces.
Covepoint seeks to capitalize on intra-day and intra-week market movements. Turnover in foreign exchange markets can reach four trillion dollars on an average day. We take active trading approach to maximize the opportunities that result from the interaction of news releases, market positioning, short-term technicals and flow dynamics.