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Ariel Global

JoJo26
in Fund Discussions
Was reading through the profile and just wanted to confirm something...

Does Rupal really aim to hedge currency most of the time? My understanding was that she would hedge currency differences from the benchmark, and only when the currency is overvalued on a PPP basis and it's cost effective. For example, if the Fund was overweight 10% the U.K. she would attempt to hedge back ~10% of the Pound to keep currency exposures in-line with the index (in USD terms). She would not, however, hedge all of the exposure back to USD, making the local currency return more relevant for evaluating performance.

Comments

  • David_Snowball
    I can check. Her claim is that Morningstar fundamentally misunderstood her position and that her plan was to eliminate currency effects to the extent she can. She has a copy of the profile and I've invited her feedback on it. If I hear back, I'll certainly share.
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