Bridge over ocean
13 May 2019 Multimedia

Dynamic Currency Management: Yes Alpha, No Beta

  1. Thomas Clarke
Investors always seek diversifying opportunities, and today this search takes place in an environment of high equity valuations, low bond yields, and increasing interest rates in some locations. Geopolitical, trade, and other macro influences pose vulnerability to potential downside from taking on more capital market beta. The merits of dynamic currency investing as a source of macro diversification and positive real return are often underappreciated and underused. Amid new and alternative asset classes, dynamic currency management is a well-founded, liquid, and viable source of investment alpha.

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