Alphadyne Asset Management is a hedge fund management firm to three hedge funds. The New York-based firm has billions of dollars in assets under management (AUM) and small group of on-staff advisors and analysts. However, the firm made news in summer 2021 after reportedly losing $1.5 billion in a short squeeze in the bond market.
Alphadyne Asset Management doesn’t offer investment management or financial planning 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 (CIO), and Bart Broadman. The firm makes investments in developed and emerging-market countries, and it focuses its investment strategies in 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 Asset Management Holdings Limited, Alphadyne (Singapore) Pte. Ltd. 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 three hedge funds, which are intended for institutional investors.
Its funds include the Alphadyne International Master Fund, Ltd.; Alphadyne Global Rates Master Fund, Ltd. and Alphadyne International (ERISA) Master Fund Ltd.
The firm generally requires $1 million as a minimum initial investment, but each fund’s offering memorandum contains the specific investment amounts 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.
Alphadyne Asset Management Investment 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.
Fees Under Alphadyne Asset Management
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.
What to Watch Out For
Alphadyne Asset Management has two disclosures on its SEC-filed Form ADV. One of these is attributed to the firm directly, whereas the other belongs to an advisory affiliate.
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.
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