Investment Management Companies

[vickyd]

Hey folks,

I just wanted to share an experience I've had with my (now-ex) investment management company - <snip>

They are a company whose 'expertise' is in finding possible trends and investment opportunities in the FOREX market and identifying them in order to take speculative profit on either currency short sales or buying futures. Or in simpler terms - better on the fact that a currency is going to become weaker or stronger and taking a buy or sell position accordingly.

Out of the 3 months that I dealt with this company - which touted itself as being well reputed and a market leader - I finally closed my account. With the exception of the first 2-3 days of doing very small transactions that resulted in profits, every single one of their recommendations was incorrect and resulted in me losing money.

I'm not angry with the fact that I lost money - that's the risk you enter this market/business with - however, warning you about the competence of the investment managers that are working there.

After 4-5 bad transactions in a row, I confronted them yesterday about their imcompetance to predict the currency trends - and gave them one last shot. Once again, they failed (though my amount lost was very little) and I ended up closing the account today.

Just a word-up if you guys are doing business with them or they approach you for an account.

regards,
Vicky D

[sarpesius]

Hey folks,

I just wanted to share an experience I've had with my (now-ex) investment management company - <snip>

They are a company whose 'expertise' is in finding possible trends and investment opportunities in the FOREX market and identifying them in order to take speculative profit on either currency short sales or buying futures. Or in simpler terms - better on the fact that a currency is going to become weaker or stronger and taking a buy or sell position accordingly.

Out of the 3 months that I dealt with this company - which touted itself as being well reputed and a market leader - I finally closed my account. With the exception of the first 2-3 days of doing very small transactions that resulted in profits, every single one of their recommendations was incorrect and resulted in me losing money.

I'm not angry with the fact that I lost money - that's the risk you enter this market/business with - however, warning you about the competence of the investment managers that are working there.

After 4-5 bad transactions in a row, I confronted them yesterday about their imcompetance to predict the currency trends - and gave them one last shot. Once again, they failed (though my amount lost was very little) and I ended up closing the account today.

Vicky D

It's a good thing you posted this.

Usually investment management companies will have their own portfolio that they post the results of. Clients should have a way to seeing the track record of such companies. Do you know what the local reputation of this company is? Is there a way to check in HK from a reliable source?

If your first few small transactions made money, then the larger ones tanked, it suggests a scam.

It suggests they do this as a teaser to get the client to invest the larger sums, then invest in deliberately dodgy scams to get the fees, and perhaps also collect a kickback from the the people they invest with. Do you know who they invest with and if those investments were really placed?

Do they charge a commission for each transaction, or are they paid according to the size of your portfolio with them? If it is the latter, the company will have an incentive to make sure your money grows.

[lulumay]

Here're my 2 cents,

If any so called, self declared financial experts out there who says they can help you make millions and millions of dollars in very little time, then why dont they just make millions for themselves and stop making two three hundred dollars commission from you.

[vickyd]

Here're my 2 cents,

If any so called, self declared financial experts out there who says they can help you make millions and millions of dollars in very little time, then why dont they just make millions for themselves and stop making two three hundred dollars commission from you.

I've been trading in the FOREX market for a while now - but not as a 'day-trader'. A day-trader would in fact sit in front of multiple screens flashing the exact currency rate at a given point in time and makes speculative gains. My previous experience was in small amounts - USD 3-4k of buying long-term (6-12 months) positions on various currencies that I would read up on. It was more of a hobby than anything else.

What a FOREX trading company does is give you expert advice on buying or selling a particular currency to hopefully take speculative gains. Sometimes a full buy-then-sell or sell-then-buy transaction is completed over a period of a few hours. The amount changed is in matter of 'pips' or 0.0001 in a currency exchange.

And to clarify - the investment managing entity is a company - and not an individual. Hence, it is not possible for them to use 'company money' (or that which is owned by their partner-level executives) to invest in the market - as it is in some cases considered insider trading as well. I got burnt by this particular company because they made horrible recommendations. It wasn't a scam by any means - it's just that this particular company is just horrendous at what it does.

The forum moderators won't let me post the company name, so I shall not do that anymore. Yet, if someone wants the name of the company - drop me a PM and I shall send it to you.

[vickyd]

It's a good thing you posted this.

Usually investment management companies will have their own portfolio that they post the results of. Clients should have a way to seeing the track record of such companies. Do you know what the local reputation of this company is? Is there a way to check in HK from a reliable source?

If your first few small transactions made money, then the larger ones tanked, it suggests a scam.

It suggests they do this as a teaser to get the client to invest the larger sums, then invest in deliberately dodgy scams to get the fees, and perhaps also collect a kickback from the the people they invest with. Do you know who they invest with and if those investments were really placed?

Do they charge a commission for each transaction, or are they paid according to the size of your portfolio with them? If it is the latter, the company will have an incentive to make sure your money grows.

Nah - it wasn't a scam. The company makes their money per transaction - and it is fixed to 4 pips on a sale or purchase. Whether I make a net profit of 200 pips or a net loss of 1 pip, their comission is fixed at 4 pips (at the buy/sale) + 4 pips (at the sale/buy) for a total of 8 pips.

So far, having dealt with 2 different investment companies / and 3 managers (in those 2 companies) in Hong Kong, I was only satisfied with my very first one. He used to follow-up regularly, gave accurate advice and a balanced way of saving money. Unfortunately, he moved to a larger bank where the client portfolio has to be a minimum of USD 1 million - so I could not work with him anymore. The person whom the company transferred my account to was a total POS and this new company has been a horrible experience.

[KnowItAll]

>> The forum moderators won't let me post the company name

We get threatened with a lawsuit or two every month.

Got some good policies (developed by a VERY pro-litgation lawyer) that keep us safe.

[vickyd]

I see your point KIA. I'll make sure I'll refrain from doing so while posting defamatory messages :P

I wanted to expose this particular company so that others don't get dragged into the same bad recommended buying tips that I received. If someone is really interested - they know where to find me

[PDLM]

Got some good policies (developed by a VERY pro-litgation lawyer) that keep us safe.

Are we allowed to have a hint what they are? Are negative restaurant/bar reviews still allowed? Negative movie reviews? Or have we now gone the way of AXP?

[shri]

Threaten to sue us and you'll find out.

[taihunggao]

Vickyd, I'd be a bit bummed out too if my advisor had constantly given me wrong advice.... but you can't get mad about it- unless they are actively managing your money (ie they are doing the trades, reporting etc), their advice is nothing but opinion. You need to do your homework to be a currency trader!! If you lose, it's your own fault (sorry!) :-)

But anyway - if you were given hard sell by this company to take trades you didn't understand, please contact the SFC, cos it's illegal and brings the financial services sector into disrepute.