Intelligent Investments Since 1995
Varengold Bank AG was founded in 1995 as an asset management boutique and focused on the development of unique, specialized hedge fund strategies from the managed futures space. With its current core business areas Prime Brokerage and Commercial Banking Varengold Bank offers a wide portfolio of products and services. Varengold Bank has its headquarters in Hamburg and another office in London.
As an independent, German private bank, the company has enjoyed the trust of institutional and private customers, to whom, thanks to our expertise, we offer individual, transparent and performance-oriented solutions. Security and quality of service offerings is always a priority for us in our domestic and international activities and provide the foundation of our strategy of intelligent investments.
ALTERNATIVE INVESTMENTS AS CORE COMPETENCY
For a representative and diversified implementation of the planned strategies, the former founders of the company selected the derivative financial instrument of futures. Custom-developed trading strategies were implemented that concentrated on the systematic trade of raw materials and stock indices. Very quickly the use of diversification of the various trading strategies was recognized: the trading approach was expanded to include complimentary strategies on the funds of funds level for custom tailored portfolios which lead to a reduced risk-return profile. Varengold later launched the first German managed futures fund of funds and hedge fund to be approved for public sale; the HI Varengold CTA Hedge, which was recognized numerous times as the best German fund of funds/hedge fund. Today’s Prime Brokerage business area in which featured external managed futures managers was born under the business area formerly known as Asset Management.
In the year 1999 the conversion of the legal structure from a “GmbH” to an incorporated company took place. Four years later Varengold received the additional license as a securities trading bank (§1 Para. 3d pg. 3 German Banking Act – “KWG”).
Varengold Bank AG is listed on the Frankfurt Stock Exchange (Symbol: VG8) since March 2007 and is subject to regulation by the German Federal Financial Supervisory Authority (BaFin). In addition, Varengold is a member of the Deposit Guarantee Scheme of German Banks (EdB), whereby the deposits of each customer are legally protected up to a value of 100,000 Euro.
Already in the first developmental years of the enterprise it was clear that transparency of the managed future strategies on the level of each individual transaction was necessary in order to secure successful monitoring and management in the sense of integrity of style and the trading strategies. For this purpose the development of a managed account platform was required through which the trading activities of the individual managers would be made visible. In so doing, Varengold Bank AG positioned itself as leader in financial innovations and development structures that enabled the real-time brokerage and online reporting. The Capital Markets Brokerage business area was thus established and attracted additional customers. Among these were not only professional traders and private investors, but also companies with international payment streams that sought to protect themselves against currency fluctuations.
In the summer of 2013, Varengold continued its successful enterprising development through attaining the license extension for operation as a deposit credit institute and achieved its largest milestone in the history of the company. Through these actions, the new business area Commercial Banking was established and with it further product solutions were placed on the market.
STRATEGY ORIENTATION FOR THE FUTURE
In the future, Varengold Bank AG concentrates on their offerings in the areas of Prime Brokerage and Commercial Banking. In line with this strategic focus, the decision was made to discontinue the Capital Markets Brokerage business area until end of October 2016. The existing infrastructure allowed the bank to realise significant scale effects in these two core business areas within the growth strategy. The bank would like to develop into a specialized provider of trade financial solutions for business customers with a regional concentration in Eastern Europe and the Middle East, as well as to a professional Prime Brokerage partner for a variety of asset classes.