I have just read R’s blog entry with a link to a paper about alternative investment and I’ve scan-read the paper. In exhibit #1, it was mapped, the universe of traditional and alternative investment asset class.
But I couldn’t find there, any investment products in forex/futures market especially those are based on algorithmic trading. I thought it was under the hedge fund class, but it wasn’t.
I’ve been wondering what is the perspective of the investment industry towards FX-based investment products? Does it really not belong to any of those asset classes, does it really not considered as a proper opportunity of investment by institutional investors? I’ve never took any courses in investing so i’d like to know how the investment in fx market (especially the ones based on systematical trading systems) are viewed by the investment industry.
I know some professional and well known FX managers, like the Dynex Corp, and several Managed Account products are also offered by regulated FX businesses, but where do all these belong to in the investment asset class map? Could anyone shed some light on this? Thanks in advance. 🙂