It's a Misconception that Currency Hedging Is Necessarily Expensive


One of the most common myths about hedging foreign currencies is that it’s expensive. Misnomers persist about the cost associated with the financial contracts that are used to hedge foreign exchange exposures. While there may be a desire to hedge, some investors mistakenly believe the cost involved always puts them at a disadvantage. Recently, Jeremy Schwartz, WisdomTree’s Director of Research, and Marc Chandler, global head of markets strategy at Brown Brothers Harriman, debunked this myth in a Financial Times letter to the editor…   To access the above article click here. To access the "Currencies: money talks" article referenced above click here.

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The views expressed are as of March 2015 and are a general guide to the views of Brown Brothers Harriman (“BBH”). The opinions expressed are a reflection of BBH’s best judgment at the time this interview was conducted, and any obligation to update or alter our views as a result of new information, future events or otherwise is disclaimed. Furthermore, these views are not intended to predict or guarantee the future performance of any individual security, asset class or markets generally. The opinions expressed in this message and/or any attachments are those of the author and not necessarily those of Brown Brothers Harriman & Co., its subsidiaries and affiliates (“BBH”). There is no guarantee that this message is either private or confidential, and it may have been altered by unauthorized sources without your or our knowledge. Nothing in the message is capable of creating or intended to create any legally binding obligations on either party, and it is not intended to provide legal advice. BBH accepts no responsibility for loss or damage from its use, including damage from virus. The above article was reprinted with the permission of the Financial Times. WisdomTree is not responsible for the content and has reprinted this article to be viewed as informational. The material contains the current opinions of the author as of March 2015, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Unless expressly stated otherwise, the opinions, interpretations or findings expressed herein do not necessarily represent the views of WisdomTree or any of its affiliates. Past performance is not indicative of future results. Diversification does not eliminate the risk of experiencing investment losses. There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in currency involve additional special risks, such as credit risk and interest rate fluctuations. Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC. Credit Suisse and/or Brown Brothers Harriman is not affiliated with Foreside Fund Services, LLC.

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