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most of the mayhem. Because of<br />
unprecedented volatility,<br />
momentum and/or contrarian<br />
models did not work, so we chose<br />
the boredom of neutrality. It<br />
worked beautifully.<br />
Sarasota is the investment advisor<br />
for The Currency Strategies Fund,<br />
a series of the Northern Lights<br />
Fund Trust. What are the<br />
investment objectives of this fund?<br />
The main objective is to realize<br />
consistent total return with an<br />
emphasis on keeping the draw down<br />
and volatility to a minimum<br />
<strong>com</strong>pared to individual currencies<br />
and other asset classes. Regularly,<br />
Ian Naismith<br />
advisors who have invested in the<br />
fund tell us “we don’t have to worry<br />
about your fund in our portfolios.”<br />
This is what we’re all about.<br />
Keeping the fund consistently<br />
performing is a balancing act<br />
between the simultaneous use of<br />
non-US Dollar currencies and the<br />
US Dollar Index. We believe using<br />
those opposing currency groupings<br />
help smooth out the return of the<br />
fund. Historically, in times where<br />
non-US Dollar currencies are<br />
showing strong trends, we tend to<br />
correlate with the trend – and when<br />
the US Dollar Index shows a strong<br />
trend, we tend to correlate with the<br />
trend. The <strong>com</strong>bination of<br />
capturing ranges of return when<br />
non-US Dollar<br />
currencies are strong,<br />
and capturing ranges<br />
of return when the<br />
US Dollar is strong<br />
– gives us<br />
consistency.<br />
>>><br />
What are your main day-to day<br />
responsibilities in managing the<br />
fund?<br />
We make sure the fund is adhering<br />
to the models that were created and<br />
keeping our eyes on opportunities<br />
that cannot be measured in a<br />
technical system. I’m a system<br />
driven person and Tony is an<br />
opportunity person – it works out<br />
very well. Early each morning, we<br />
know exactly where our exit or<br />
entry prices are on a currency by<br />
currency basis. If either limit is<br />
breached, we take action. Once<br />
trading begins, we look for intraday<br />
irregularities that might be<strong>com</strong>e<br />
opportunities. We also make sure<br />
that the trades are fairly priced<br />
<strong>com</strong>pared to the intrinsic value of<br />
the items we are trading. Besides<br />
the trading and monitoring, we do<br />
the normal mutual fund type<br />
january 2010 e-FOREX | 159
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