Quant Fund Gives Robots 364 Days Off to Best Currency Rivals

(Bloomberg) Like a lot of hedge funds, Principal Global Investors’ Macro Currency Group uses computer-driven models to devise trading strategies. What sets it apart is that its machines only make calls once a year.

Each January, the computers’ longer-term economic projections establish the firm’s key trading positions for the next 12 months. The bets don’t always seem intuitive at the time. At the start of this year, the models projected the yen would appreciate against Swiss franc, even as forecasters saw the pair little changed in 2016.

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