CITIC Capital Holdings Ltd., a Chinese alternative investment and advisory company has backed a U.S.-based asset management fund pioneered by former executives of FX Concepts, one of North America’s largest former Forex hedge funds, according to a recent statement.
Bob Savage and Ron DiRusso, the former chief operating officer and chief strategist of FX concepts, will head the new asset management fund. Previously, FX Concepts had been driven to bankruptcy by an outflow of clients last October, a finality discovered by Forex Magnates nearly two weeks before other sources. Its fate was largely determined by a series of subpar fund performances that seemed to hasten its demise and fall from grace as the largest currency hedge fund in the world with $14 billion in assets.
More Questions Than Answers As Familiar Faces Re-emerge
CITIC Capital represents an intriguing choice for the financial backing of the new management fund, given its valuation of nearly $4 billion in assets. The company exists as a subsidiary to China Investment Corp and CITIC Group Corp, one of China’s largest conglomerates. Savage had previously been rumored to be part of a new venture in 2014, with many of those suspicions confirmed with the announced partnership with CITIC.
According to a source familiar with the details of the matter, negotiations had been in the works with CITIC since February 2013 – a curious notion given that FX Concepts was in the midst of a tailspin. At this juncture there appears to be a lot of grey area as neither Savage, DiRusso, nor CITIC have released many details on the composition of the new fund. However, the nature and timing of the prior negotiations help explain the presence of several former FX Concepts' employees within the new fund, albeit of lesser rank than Savage and DiRusso.
