问题如下图:
请问一下,是否需要考虑hedge/not的问题?比如recommend to partially hedge,which is less costly than a full hedge. Also, it is possible to benefit from favorable currency rate movements by a partial hedge, thus, it has the potential to enhance currency alpha further.
但,问题是,currency overlay separates currency alpha & hedge mandates,如答案所言,alpha is managed externally,就不属于fund manager的concern了,对吗?所以最后recommendation不需要考虑hedge与否的问题?
另外,fund manager internally manages currency beta,这里是指manages risk alone吗?为什么不是整个risk & return of currency 呢?基础课里有说到,currency overlay treats currency as an independent asset class,那是不是可以理解为,risk & return as a whole 被separate出来,单独管理呢?
谢谢!