Hetmed Hedge Funds
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CURRENCY HEDGE FUND
Core strategy
A fully hedged, high-performance intraday trading strategy designed to capitalize on short-term inefficiencies in the foreign exchange (FX) and commodities markets.
Provides access to a proven FX approach tailored for family offices and sophisticated investors.
Commitment to a maximum loss of 10% Under any market conditions.
Investment Strategy
The Hetmed Fund implements a disciplined, fully hedged intraday trading strategy designed to deliver consistent returns while protecting investor capital, even during periods of heightened market volatility.
Strategy Highlights
Dual-Sided Market Execution
By simultaneously initiating long and short positions, the strategy captures short-term pricing inefficiencies while naturally hedging against adverse market movements. This approach seeks to enhance upside potential while mitigating downside risk.
Minimal Overnight Exposure
The fund’s trading activity is predominantly intraday, with most positions closed by the end of each trading day. This approach significantly reduces overnight market risk and allows for strong daily control of portfolio exposure, while retaining the flexibility to hold positions beyond a single trading session when strategically justified.
Focus on Major FX Markets
By concentrating on major currency pairs such as EUR/USD, GBP/USD, and USD/JPY, the fund leverages the unique advantages of the global foreign exchange market:
- Scale: The world’s largest financial market, with approximately $9 trillion in daily trading volume
- Diversity: Market participants include importers, exporters, central banks, institutional investors, and professional traders, with each currency supported by the economic stability of its issuing country.
- Accessibility: Continuous trading 24 hours a day, five days a week (24/5).
- Liquidity: High trading volumes enable high liquidity
- Efficiency: Low transaction costs support cost-effective trading strategies.
Selective Commodities Trading for Diversification and Opportunity
The fund maintains a limited allocation to commodities trading, designed to complement its core FX strategies.
This selective exposure focuses on relative value opportunities in individual commodities—such as gold, silver, crude oil, and natural gas—with the objective of capturing short-term price discrepancies reflected in opening price spreads.
By incorporating trading based on price differentials, the fund adds an additional layer of diversification and enhances its potential to generate uncorrelated returns, all within a disciplined and risk-controlled framework.
Investor Protection at the Core
Capital Safeguard Commitment
The Hetmed Fund is contractually committed to a maximum loss threshold of 10% of invested capital under all market conditions. This binding protection is designed to enhances transparency, provides meaningful downside protection, and supports long-term capital preservation.
Fully Hedged Positions
Each position is initiated with a built-in hedge, effectively mitigating directional risk from the outset. This approach enhances portfolio stability, particularly during periods of volatile market, while reinforcing transparency, limiting downside exposure, and supporting long-term capital preservation.
How do we do it? Trading strategy
Trade with Successful Forecast - illustrative example
Each trade is initiated simultaneously in both directions—long and short—on the same currency pair, with the objective of capturing the price differential that develops between the two positions. The profit-seeking position is executed through a top-tier broker, while the hedging position is placed with a market maker. When the market behaves as anticipated, gains and losses across the two positions offset, resulting in a net zero market exposure. In this scenario, a rebate is received from the market maker on the hedging leg, effectively generating a positive return for the trade.
Trade with Erroneous Forecast - illustrative example
In cases where the market moves against the anticipated direction, the hedge protects the position from significant losses, and the only cost incurred is the transaction fee paid to the top-tier broker.