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Alphadyne Asset Management Review

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Alphadyne Asset Management, LP

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. 

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. It will pair you with up to three local advisors who can help you reach your financial goals. Get started now.
  • 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 Long $1mm 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 We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

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%. 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