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Alphadyne Asset Management Review

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Alphadyne Asset Management

Alphadyne Asset Management is a fee-only firm providing services to institutional clients and investment vehicles. The New York-based firm has more than $120 billion in assets under management (AUM), with a total of four clients. 

This firm doesn’t offer investment management services to individuals. To find a financial advisor who does, use SmartAsset’s free financial advisor matching tool.  

Alphadyne Asset Management Background

Alphadyne Asset Management was founded in 2005 by Philippe Khuong-Huu, chief investment officer, and Bart Broadman. The firm makes investments in developed and emerging market countries, and it focuses its investment strategies on several markets. These include foreign exchange, equity, global interest rate and commodity and credit markets. 

The firm also owns several companies that serve as sub-advisors. Its sub-advisors are Alphadyne Asset Management (UK) LLP, Alphadyne (UK) Holdings Limited, Alphadyne Asset Management Holdings Limited and Alphadyne Asset Management (Hong Kong) Limited. 

Alphadyne Asset Management Types of Clients and Minimum Account Sizes

Alphadyne Asset works with investment consultants, asset managers, insurance companies, pension funds and sovereign wealth funds. Its clients also include investment vehicles, like private or mutual funds, which are intended for institutional investors.

Its funds include the Alphadyne International Master Fund, Ltd.; Alphadyne Global Rates Master Fund, Ltd.; Alphadyne International (ERISA) Master Fund Ltd. and the Co-Map Alphadyne Segregated Portfolio. 

The firm generally requires $1,000,000 as a minimum initial investment, but each fund’s offering memorandum contains the specific investment amount required. 

Services Offered by Alphadyne Asset Management

Alphadyne Asset primarily offers portfolio management for pooled investment vehicles. 

  • Portfolio management
    • Alphadyne International Master Fund, Ltd
    • Alphadyne Global Rates Master Fund, Ltd
    • Alphadyne International (ERISA) Master Fund Ltd
    • Co-Map Alphadyne Segregated Portfolio

Alphadyne Asset Management Investing Philosophy

Both Alphadyne Asset and its sub-advisors strive to forge new investment ideas through three strategies: quantitative analysis, fundamental analysis and market evaluation. The firm works to invest in an extensive range of financial instruments and asset classes, and it implements two types of trading that serve this purpose. These include directional, or macro, trading and relative value trading. 

The firm also executes its investment strategies in foreign exchange, interest rate, volatility, credit, equity and commodity markets.

Alphadyne Asset Management Fees

Alphadyne Asset generally requires a monthly management fee of each client’s net assets. The firm receives the fee in advance at a rate of 0.166%. The management fees for the funds vary, but they’re specified in each fund’s offering materials. These fees may be negotiable, and the firm retains the authority to reduce or waive the management fee. The firm’s sub-advisors also receive annual fees, but these are specified in the sub-advisory agreements. Alphadyne Asset earns performance-based compensation in the form of an incentive fee.

It’s also important to note that investors are normally permitted to withdraw from the funds on a quarterly basis. The firm’s management fees are also exclusive of transaction fees, brokerage commissions and other related expenses. 

Learn more about advisors' typical costs here.

What to Watch Out For

The Chicago Board of Trade (CBOT) found the firm in violation of CBOT Rule 538.C, or Exchange for Related Position (EFRP). An EFRP transaction occurs when a business privately negotiates an off-exchange transaction. The firm was found to have executed such transactions on November 3, 2015 and March 1, 2016. It paid a $65,000 fine to resolve the violation. 

Also worth noting: Alphadyne Asset may implement similar investment strategies amongst multiple funds, which could create a conflict of interest. However, the firm says it will work to ensure that no fund is treated unfairly when it comes to investment opportunities and security allocation.

Additionally, as noted earlier, this firm isn’t for individual investors. If you’re interested in finding a financial advisor, consider using SmartAsset’s free financial advisor matching service.

Opening an Account With Alphadyne Asset Management

The best way to open an account with Alphadyne Asset is by calling the firm at (212) 806-3700. 

All information is accurate as of the writing of this article. 

Tips to for Finding a Financial Advisor

  • If you’re having a difficult time finding an advisor, consider using SmartAsset’s financial advisor matching tool. After you complete a short questionnaire about your financial situation, the tool will pair your with up to three local advisors who can help you reach your financial goals.
  • Ask prospective advisors if their firm has a dedicated compliance officer. Ideally, you want to hear yes, because then it's more likely that regulations and policies are being followed. But small firms may not have the resources to hire a compliance officer, so you’ll want to know what they do to ensure that regulations and policies are being followed.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research