It has been noted that emerging markets have different market properties to those of the developed markets. Here, it is important to sell these out and then in turn relate them to the considerations of passive and active currency risk management. First off, let us look at the major differences that [...]
Archive for the ‘Currency’ Category
July 3rd, 2009 - 8:34 am § in Currency
Adding “Alpha”
The motive of risk reduction is primarily defensive, in that it seeks to defend or maintain the portfolio’s return within a given tolerance of overall risk. That for adding “alpha” on the other hand is quite different, in so much as “alpha” refers to the excess return generated by an activ[...]