BarCap highlights FX benefits
NEWS
Writing in Equity Gilt Study 2006, David Woo, global head of currency strategy at Barclays Capital in London, said adding FX as a further asset class to a portfolio is an effective way of limiting risk.
"The inclusion of the asset in the portfolio can improve the risk-adjusted return of the portfolio by reducing the overall volatility arising from the volatility of other risky assets," he said. Woo goes on to point out that an equity investor who hedges out an FX position could not replicate
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