Fair value pays off in 2008
LONDON - Currency managers looking at simple fair value for currencies would have experienced a strong year in 2008, according to research by Royal Bank of Scotland (RBS).
The bank's naive simulations of currency strategies found the value strategy gained the most in the past year, returning 5% in December and ending 2008 with a total of 26.9% in returns. The strategy gained from long US dollar positions up to October and switching to being short dollar in December by year-end, particularly
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