Quant Hedge Fund Aspect Sees More FX Risk on Investor Radars

Aspect Capital Ltd., a quantitative hedge fund with about $7 billion in assets, is seeing greater demand for currency hedging products from Australian pension funds looking to boost returns.

The money management company that uses data-crunching algorithms and mathematical models to bet on market trends has received an increased number of requests for currency overlays and specifically designed mandates to handle foreign exchange risk. Part of Aspect’s business that deals with managing this type of exposure is growing globally, including in Australia, according to Anthony Todd, chief executive officer of the London-based firm.