23.03.2015 - Currency hedging takes on new importance for global stock funds
As the dollar surged in the last 12 months, David Marcus, head of the Evermore Global Value fund, steadily increased his stake in Europe. He now has 60 percent of his portfolio invested in companies in the euro zone, the largest stake among any global fund tracked by Lipper. The gains in those stocks wouldn't matter if the fund wasn't actively hedging against euro weakness, which it is, helping the fund rise 8.8 percent so far in 2015, putting it among the top-performing global stock funds this year. "We're stockpickers, and by hedging currencies we can be pure stockpickers without the currency risk," said Marcus...............................................Full Article: Source
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