The Currency Hedging Decision: A Search for Synthesis in Asset Allocation

The currency allocation in a portfolio deserves more attention than it typically gets. Currencies should be integrated with allocations to other asset classes, but the appropriate currency hedging decision is neither complete hedging back to an investor's base currency nor total avoidance of cu...

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Veröffentlicht in:Financial analysts journal 1995-05, Vol.51 (3), p.8-17
1. Verfasser: Gastineau, Gary L.
Format: Artikel
Sprache:eng
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Zusammenfassung:The currency allocation in a portfolio deserves more attention than it typically gets. Currencies should be integrated with allocations to other asset classes, but the appropriate currency hedging decision is neither complete hedging back to an investor's base currency nor total avoidance of currency hedging. This article looks at the contribution currency management can make to risk reduction and return enhancement.
ISSN:0015-198X
1938-3312
DOI:10.2469/faj.v51.n3.1900