Disrupting Currency Hedging

A Safe, Cost-effective, Turn-key Solution

Capture the Full Value from your Currency Hedge


Many small & medium sized corporations are at risk because they do not hedge their foreign currency exposure, resulting in the reduction of their profit margin or even losses.  In some cases this can lead to bankruptcies.   The reasons often cited for taking this risk are due to the high costs usually associated with hedging and the lack of turn-key solutions in the market.  

For those companies that don't hedge, to protect their profit margin from adverse currency fluctuations, instead of hedging, many SMEs add a “currency safety buffer” of a few percentage points on top of their profit margin. However, when currency volatility increases, as experienced frequently over the last 10 years, the currency buffer may not suffice, and SMEs’ profit margin can be eaten away or even wiped out. Read our thought piece or listen to our podcast on how hedging can allow companies to either keep this "safety buffer" as extra profit margin (increasing profitability) or remove the buffer and lower their selling prices (improving competitiveness).

To understand better who should hedge and why, including a detailed case study, read our whitepaper written for SMEs. You can also read our case study on how we were able to help one manufacturing company, whose situation is very similar to that of many companies operating out of Hong Kong, improve their profit margin and minimize costs associated with currency management.

If you are doing cross border business with China and are still paying suppliers in USD, listen to our podcast or read our thought piece on "Why companies should pay their Chinese suppliers in RMB (instead of USD)."

Institutional investors

Institutional investors, such as private debt and real estate funds, face constant pressure to deliver returns and reduce costs. They must deal with a range of challenges, including the impact of currency volatility on their investments.  In order to reach their risk adjusted return objective, a fund must eliminate the currency risks that erode returns and can generate capital losses as well as recurring costs.

Currency risk must be analyzed with respect to the fund’s strategy, return objective and risk mandate so that currency conversion and risk hedging can be planned and implemented using an efficient operational solution. The objective is to maximize the fund’s risk-adjusted returns by immunizing its capital and returns from currency volatility and minimizing portfolio management costs.

In order to learn more, read our whitepaper written for Funds explaining the key reasons to hedge and a detailed case study.  Alternatively, you can listen to the summary in our podcast interview with Alain Groshens, head of portfolio management.

To address the above problematic our Risk Hedging Solutions were designed to provide:

CONTACT US To learn more about our solutions or for a complementary analysis of your currency risk exposure and how we can help improve your profit margin and save costs.

Read what our clients are saying about SystematicEdge's Currency Hedging Solutions:

Contact us to learn more about our investment and currency management solutions: insights@systematicedge.com

All SFC regulated activity is conducted by Privium Fund Management (HK) Limited, Suite 2606, 26th Floor, Prosperity Tower 39 Queen’s Road, Central Hong Kong,  SFC License No. CE: BGR298

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