BLOOMINGTON, Ill. - GK Capital Management, a quantitative foreign exchange management firm, recently began offering currency overlay, and, generally, risk management to U.S. pension funds.
In the past year, currency overlay management "has gotten to be a harder sell," said Philip R. Berber, vice president of marketing. He cited the "disappointing results" of many currency overlay managers thus far, coupled with the decline in the dollar, which removed the need to hedge non-U.S. investments. To counter these factors, GK aims, among other things, to "provide additional education to plan sponsors on how the (foreign exchange) market works and how it can be tailored to their needs in the 1990s."
So far, the firm has no U.S. clients for currency overlay yet.