Dynamic Currency Hedging
Hedging foreign currency exposure reduces the risk inherent in overseas investment.
However, given that there is no optimal hedge ratio, a dynamic approach is superior to a static hedge due to the cyclical characteristics of currency market behaviour.
This piece of content contains the views and opinions of Mark Astley, Co-CEO of Millennium Global Investments and does not necessarily represent the views and opinions of Millennium Global or any of its Portfolio Managers. This information is intended for Professional Clients only, not target retail clients. This information does not constitute an offer to buy or a solicitation of an offer to sell and does not constitute an offer or solicitation in any jurisdiction in which such a solicitation is unlawful or to any person to whom it is unlawful. Important disclaimers: https://investments.millenniumglobal.com/millennium-global-marketing-disclaimers
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