Thames River Global Bond swaps dollar position for sterling

Thames River's Global Bond fund has fully hedged its currency bias back to sterling after using the ...

Thames River's Global Bond fund has fully hedged its currency bias back to sterling after using the weakening pound to command sharp returns in 2008. Co-managers Peter Geikie-Cobb and Paul Thursby held quite large US dollar positions last year, believing sterling was vastly overvalued compared to its starting positions of about $2.10 and ¥2.40. However, the duo made a strong recent move into the UK gilt market on expectations today's sterling level has fully priced in most of the dire economic outlook, relative to other key markets. Global bonds were the success story of 2008, with th...