Multi Currency Sandwich Tracking

by | Nov 26, 2005 | Multi Currency Investing

Multi currency portfolios we are tracking are all developing according to plan. The hedged portfolio is not showing any major movement at the moment which is what a hedge is about. The goal in this portfolio is to earn 14-15% p.a. return though positive carry.

See the attached file.

The US Dollar long portfolio shows a small profit as the US dollar is strengthening. The dollar short portfolio shows a small loss for the same reason.

The Asian portfolio is really powering ahead and now shows a profit of US$17,000 or an appreciation of 17% in just 4 weeks. This portfolio is still experiencing gains on both sides of the investment. It is gaining positive carry as the value of the funds rise faster than the loan cost plus the loan is making a classic sandwich forex profit as the borrowed yen falls versus the invested currencies. This doesn’t happen often but when it odes we normally see a fast return like this as currency parities tend to shift quickly.

In this case we are seeing great upwards movements in this portfolio as Asia is outperforming most of the world and and Japan is now especially moving after almost 18 years in a downtrend.

The Japanese market is up 30% this year and Jyske Invest Japan is up even more, 35%.

Next week we will also add an emerging market sandwich available (investing in bonds from Hungary ; Mexico , and South Africa as well as stocks in the Jyske Latin America, Emerging Markets and Eastern European Market mutual funds.

You can get more details about these funds from Thomas Fischer at Jyske Bank. His address is

Until then, good investing!