Penrich Capital is a premier Hedge Fund Manager established in 2004 on the principles of high performance, business transparency, and ensuring the firm's interests are aligned with client's interests. Penrich Capital's Hedge Fund is composed of highly skilled analysts; each member of its investment team having nearly 20 years of financial market experience. Collectively, the team has worked in markets in North America, Europe, Asia and Australia. Macroeconomic analysis of major global and regional trends form the heart of the investment strategy.

Trading Methodology
Penrich Capital's foreign exchange investment strategy is macro-economic based. Penrich's own research is used in conjunction with Penrich's network of contacts in public and private sector institutions around the globe. Particular attention is paid to developments in international balance of payments, monetary policy and cross border investment flows. Through this research, the investment team seeks to identify exchange rates that are significantly above (or below) the value that economic fundamentals suggest is appropriate.

Because exchange rates tend to revert back to their fundamental equilibrium rates, this process allows Penrich Capital to recognize potentially profitable opportunities. The final element of the investment strategy is the identification of the time frame during which the exchange rate will move back towards its fundamental value - an analysis of interest rate differentials and investor risk appetites is an important feature of this part of the strategy.

Currencies Traded
All currency pairs relating to USD, EUR, JPY, GBP, CHF, CAD, AUD and NZD.

Misaligned European Currencies - Case 1 GBP Posted Yesterday at 10:35 PM by Penrich Capital As 2009 begins, there appear to be some severe misalignments in exchange rates. However, whereas in 2008 the levels that appeared “wrong” were in the US and Japan, the major misalignments now appear to be within the European currencies. The extent of the divergences can be seen by the fact that of the five major currencies, two (EUR and CHF) reached their highest levels of the past 25 years during December whilst the other three (GBP, SEK and NOK) reached their lowest levels for 25 years. At the end of November last year, we established a long position in GBP. We were looking to build up the position on further weakness and December provided ample opportunity to do so. In trade-weighted terms, by the end of December... Continue reading... Penrich Capital Special Guest Trader

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Staying Short the CHF Posted 12-10-2008 at 02:15 AM by Penrich Capital We have been using the Swiss franc as a funding currency for the past two years. For most of this time, the CHF was just one of a large basket of currencies that we were using to fund our long positions. The low interest rates in Switzerland were attractive but there were generally no strong reasons to believe that we would also benefit from a fall in the CHF. However, after the dramatic movements in foreign exchange markets in September/October, we began using the franc as our single largest shorting currency. The franc’s rise in October took it back towards the high points reached in 2002 and 2005. The speed of the rise and, perhaps to a lesser extent, the levels which the CHF reached (particularly against the EUR) caused the... Continue reading... Penrich Capital Special Guest Trader

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Staying Long the AUD Posted 12-05-2008 at 12:02 PM by Penrich Capital The Australian dollar entered our list of currencies to buy in October following a spectacular decline during the previous couple of months. During October, the AUD touched its lowest levels ever against the EUR, JPY, CHF and CAD. In trade-weighted terms, the currency is not exceptionally low, but it has moved back towards the bottom half of the ranges that existed for the 1990s and the first half of this decade. Prompted by the speed of the decline and, to a lesser extent, the low level of the AUD at the time, the Reserve Bank of Australia has intervened to support the AUD. During the past month, the AUD has generally risen marginally against the other major currencies. Nevertheless, some of the exchange rates remain extreme.... Continue reading... Penrich Capital Special Guest Trader

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Waiting Before Buying the NZD Posted 12-03-2008 at 11:14 PM by Penrich Capital The New Zealand dollar was above its long-term average levels against all other major currencies at the start of the year. This, combined with clear evidence that the currency was overvalued, meant the NZD was in our group of currencies to short. This year the currency has fallen steadily and has now moved down towards the troughs seen in the past couple of cycles. The fall has been particularly rapid during the past couple of months with the NZD dropping sharply against most of the other major currencies. The NZD is now below its long-term average against all of the other major currencies except the GBP. In some cases, the currency is 15%-40% below its “norms”. We stopped using the NZD as a shorting currency in October and the... Continue reading... Penrich Capital Special Guest Trader

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