It looks like the world is about to get another hedge fund. World renowned foreign exchange strategist Stephen Jen has left Morgan Stanley and is heading out to launch his very own hedge fund, SLI Macro Partners which has already set up a temporary office in the very exclusive Mayfair, London and will also be offering the service of currency overlay to institutional investors.
New Direction for Jen
So why is Jen moving in this new direction? He has seen the increasing need for more FX hedging from large fund managers within today’s environment which is “increasingly volatile.” He will also be in the minority – which is good – vis-à-vis these overlay services since there are very few firms that offer this. Jen seems to have everything needed for success, having already netted a seed investor.
Jen on International Currencies
Meanwhile, Eurozone might be well-advised to take note of Mr. Jen’s views. For the last three years, he has been quite vociferous on the subject of its future. Interestingly it was three years ago that the European Central Bank last increased its interest rates which it is set to do again now, in line with the deepening Eurozone crisis. But vis-à-vis the dollar, Jen sees it not having to count on the economy; it will do well regardless due to its “convex relationship to US economic growth.”
He probably knows what he’s talking about too. Jen held a position at the International Monetary Fund before taking up with Morgan Stanley so he has experience in the field. So with all this in mind, it looks like SLI Macro Partners stands a pretty good chance of success.
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