@article {Hamza146, author = {Olfa Hamza and Jean-Fran{\c c}ois L{\textquoteright}Her and Mathieu Roberge}, title = {Active Currency Hedging Strategies for Global Equity Portfolios}, volume = {16}, number = {4}, pages = {146--166}, year = {2007}, doi = {10.3905/joi.2007.698985}, publisher = {Institutional Investor Journals Umbrella}, abstract = {His article examines, for 21 developed countries, whether active currency hedging strategies can outperform currency benchmarks: 100\% unhedged, 50\%/50\%, and 100\% hedged. We consider four active currency strategies: 1) the {\textquotedblleft}selective{\textquotedblright} strategy that consists in hedging when the forward rate is at a premium, 2) the {\textquotedblleft}large premia{\textquotedblright} strategy that consists in hedging only when the premium is large, 3) the momentum strategy, and 4) the mean-reverting strategy. Results for the 1992{\textendash}2004 period show that, overall, the selective strategy outperforms the other strategies at 12- and 1-month horizons. Results for sub-periods show that no strategy continuously dominates.TOPICS: Global, developed, currency}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/16/4/146}, eprint = {https://joi.pm-research.com/content/16/4/146.full.pdf}, journal = {The Journal of Investing} }