Just in case the Chinese politburo or the Parliament of Norway need some advice about how to invest their multibillion-dollar sovereign funds, the French business school Edhec has supplied it. The conclusion of its research? Most SWFs are insufficiently hedged.
Sovereign funds have grown to become a very large component of the global economy in recent years, driven primarily by rises in the price of oil and other commodities — which have poured cash into the coffers of resource-rich nations — and global trade imbalances, which have meant that producing nations, such as China, have built up enormous reserves of foreign currency……………………………………….Full Article: Source