(1888PressRelease)
July 11, 2008 - Mike Rasmussen, who helps oversee $75 million as a Zurich-based partner at Capricorn Asset Management, comments on the outlook for the U.S. dollar, the euro and the Swiss franc. He spoke in an interview at a hedge funds conference in Singapore.
On the U.S. dollar:
"We see a strengthening of the dollar toward the end of the year," either starting "this quarter or from next quarter. We are on the dollar-buying side."
"We're technical traders. On the relative strength index, it's been oversold. Look at the dollar index. It's trading at all-time lows, and there has to be a retracement.
"On the fundamental picture, the Federal Reserve's easing policy has pretty much come to an end. They may even have to reverse, with inflation coming back in."
On the euro:
"At the moment, we're not taking any positions on the euro-dollar quite yet. We believe there could be spikes in the market, and as everyone knows, the market can overshoot."
"If the euro-dollar spikes to a certain level, then we'll look to sell it. We're looking for levels on the euro-dollar back down to around $1.50 within three months.''
On the Swiss franc:
"The position we have on is actually on dollar-Swiss. We're not looking for it to retest parity again. We're on the buying side of dollar-Swiss."
- Reporter on this story: Ron Harui in Singapore at +65-6212-1161 or rharui ( @ ) bloomberg dot net
- Editor responsible for this story: Sandy Hendry at +852-2977-6608 or shendry ( @ ) bloomberg dot net dot
Capricorn is an established currency manager with a global client base that includes; Banks, Asset Allocators, Institutions, Investment Funds and High Net Worth Individuals. As of today, the company has more than 50 years of experience within the investment advisory arena, currently advising over US$200 million in client assets. Since 1999 Capricorn has produced superior risk adjusted returns in its pure alpha strategies managing an additional US$75 million, trading high liquid currencies as managed accounts and offshore funds for Individual and Institutional clients. The vision behind Capricorn is to reach our capacity of US$ 500 million, managing the assets of professional investors. To achieve this goal our aim is to provide premium investment programs that seeks, strong returns with low volatility and a low correlation to other investment vehicles. In order to strengthen our ability to add value to our clients’ portfolio, we choose to develop and maintain relationships with reputable financial institutions that are leaders in their field.
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