The Contrarian Investor: Hedging FX risk

Hedging FX risk

With sterling rising faster than the price of a semi-detached house in Tunbridge Wells, is now the time to start thinking about hedging FX risk within a diversified portfolio of international assets?

I ask only because it increasingly matters to my own financial future. Unsurprisingly, my portfolios are jammed full of odd, adventurous assets no other sensible person could reasonably be expected to own. However, the one key theme that dominates everything is international diversification. My own focus on globalising my investments is based on a shallow prejudice – as a good old-fashioned liberal internationalist, I cannot for the life of me see why UK based investors are so obsessed with UK shares. The LSE has rushed to list all sorts of junk, including a long list of global reso...