So, we favor being short
euro as a hedge against political risks that could continue to unfold.
Not exact matches
While dozens of
hedge funds have sprung up this year to invest in the white - hot digital currency market, this one, known
as Arrington XRP Capital, is the first to be denominated in a crypto - currency rather than dollars or
euros.
Currently, we're invested in currency -
hedged ETFs
as a way to
hedge some of our emerging market exposure, and we've used them in the past
as a way to
hedge our European equity exposure from a falling
euro.
As of quarter - end, approximately 73 % of the Fund's Australian dollar, 68 % of the Swiss franc, 69 % of the Japanese yen, 20 % of the Swedish krona and 13 % of the
euro exposures were
hedged.
A combination of market positioning, such
as record net - long
euro futures positioning, rising U.S. interest rates, and diverging economic performances (such
as data surprising indexes), seems to have encouraged the dollar's recent advance, helping our
hedged positions.
As of the recent quarter end, the Fund's Australian dollar and Norwegian krone
hedges decreased to 23 % and 10 %, respectively, and with the currency movement due to the unpegging of the Swiss franc to the
euro in January 2015, our Swiss franc exposure increased slightly to 29 %.
Exchange traded funds, such
as the iShares Currency
Hedged MSCI EMU ETF (HEZU) and the iShares Currency
Hedged MSCI Germany ETF (HEWG), can provide access to the eurozone market and Germany, respectively, while potentially mitigating exposure to fluctuations between the value of the
euro and the U.S. dollar.
«Very simply, if
as a investor with USD liquidity, I buy a bond denominated in
euro and I do not
hedge the currency, I do not have fixed income; I have variable income.
Similarly, TDB911 captures the return of the MSCI EAFE Index, which tracks markets in Europe, Japan and Australia, in Canadian dollars and TDB952
hedges the exposure of our dollar to a basket of currencies such
as Euros, Pounds, the Yen and the Aussie Dollar.
While Brent Crude futures have,
as with most other important energy commodities, been always traded in US Dollars per barrel, Singapore's pan-Asian multi-product commodity and currency derivatives exchange - the Singapore Mercantile Exchange (SMX)- currently lists Brent Crude Futures Contracts priced in
Euros [1], in a move to provide alternative, unique
hedging strategies, which would benefit participants with Euro - related business considerations for example.
However, the
euro's recovery was more likely due to month - end and quarter - end flows
as hedge funds, mutual funds, pension funds, and other large players rebalance their portfolios and / or prepare to make cash distributions.