24FX Global is an independent family office and a trading, advisory and currency hedging firm for global institutional and HNW clients. We spoke to Andy Schnappberger, MD of the company, to find out more about their company and learn the secrets behind their success.
At our firm, we manage individual accounts in the Forex Market and offer tailor made solutions for an external capital markets advisory, technical research and act more and more as an exclusive advisor for HNW and family offices. In terms of our approach, this is focused on technical and quantitative algorithms that are unlike any that you’ll find at our peers. Moreover, our performance target is over 20% per annum in all market conditions.
In terms of our background, 24 FX Management started as an external prop trading unit of a family office in the Monaco/South of France region at 2002. As a result of the success in our trading, we grew relatively fast, having another two family offices under management and consolidated all of our trading relevant activities in 24FX Management. This meant that all prop trading and capital market advisory was provided as an external firm to these three family offices. After that, our client base expanded, and led us to being involved with smaller FO, prop trading units, hedge funds and HNW with an understanding of risk. Due to our structure, we do not work for the retail sector. While growing even further in the past few years, we partnered with a financial advisory firm to form and to consolidate all trading and capital markets management and advisory, as well as external technical research activities.
Throughout this time, we are proud to say that we still have our very first investors and founding investors as clients or under management, and believe that this is a testament to how important we value long-term client relationships. Our understanding of risk and volatility (and of course the real difference of these two most important factors) as well as the needs of our clients have provided the basis for some very fruitful and long-term business relationships.
Looking closer at the services we provide, our main experience and investment experience lies in global spot FX trading as well as trading in derivatives such as bonds and indices. Meanwhile, we are also partner with family offices who want to build up an active trading arm as well offering tailor made technical research. One of our newer features is that we teach and coach HNW or trading units on several low risk trading tactics. This is if they want to manage some funds on their own or in-house alongside their external or third party investments. We have found that this service has resonated well with our clients, particularly in the Asia and Middle East regions. It is expensive and demanding, but has the possibility to reap some very impressive rewards. However, our main focus is in managing individual spot FX accounts.
Our portfolios are 90% managed in the Forex market. So the main risk and reward comes from actively forex trading. During this process, we discuss with a client the risk tolerance as well as the connected reward and volatility aspects with these parameters. It is between these parameters that all currency risk is managed. In my view, a good managed forex portfolio account should have a good share in everyone’s global portfolio. I believe that the performance opportunities are the best from all asset classes when it comes to technical trading. From my experience, currencies as an asset class can be very much less riskier than other asset classes. Among other factors, it depends on the leverage of the account, and FX can be the performance booster of any account. Therefore, it is extremely important that the risk is completely understood by both the investor and the trader/portfolio manager.
When looking back on our success, I believe that there a number of ingredients that have contributed to our performance. First and foremost, we have an excellent and trustworthy team. Further, we have a philosophy that is against any corporate games and ego trips, and don’t worry about the fancy titles on our business cards. From our perspective, the most important card for a trader should be his/her ATM card. As our industry can be quite intense, the right mind-set when it comes to trading and managing financial markets is fundamental, and you need the willingness to adopt and develop your personality. Perhaps often undervalued in our industry is that every member of our team needs a personal life that is outside of the financial markets. All in all, I believe that an open mind is important as well as surrounding myself with people who share the same qualities and habits.
When it comes to alpha management and pure trading risks, I believe that the quote from Albert Einstein “Everything should be made as simple as possible, but not simpler” speaks volumes.