Effective currency hedging is a balancing act. One that requires you to ignore every distraction around you, and stay focused on your end goal.

The balancing elephant.

At Alpha, we specialise in helping corporates and institutions manage their foreign exchange exposures more effectively and efficiently. For their needs, not ours.

Please select your organisation type below.

Corporate Institution

The elephant in the room.

There is no shortage of advice or opinions on where exchange rates are going.  However, for those responsible for deciding how to manage their currency exposures, the elephant in the room is obvious – in the long-term, nobody can reliably predict the currency market.

Despite this, currency purchasing decisions are still frequently based on a ‘best guess’ and therefore companies remain materially vulnerable to currency risk.  Behavioural trends such as ‘prospect theory’ and ‘confirmation bias’ explain why this happens; what they don’t do is provide a better way for handling currency uncertainty.

This is where our approach comes into play.

 

A balancing act.

At Alpha, we solve the problem of exchange rate unpredictability by developing FX strategies that help businesses balance the three major variables they have to consider when hedging: how much, how far forward and when?

In doing so, we give them greater control over the impact exchange rate volatility has on their profit margins, cash flow and ability to buy or sell goods at competitive prices, regardless of market performance.

Ignoring distractions.

The main purpose of a hedging programme is to protect businesses from external distractions that can lead them to hedge disproportionately.  Such distractions typically consist of currency forecasts or the emotional attraction to an ‘optimal rate’.

At Alpha, we recognise that these distractions are steeped in speculation and will therefore naturally lead to inconsistent and uncertain results.  This is why an element of formality is essential to control the impact currency volatility has on any business.

A different perspective.

Achieving consistent and effective results often requires not only a change in strategy, but also a change in perspective.  Fundamentally, this means managing currency in line with your commercial objectives and competitive landscape, rather than a market view or even a target hedge rate.

Ultimately, we help businesses that want to outperform their competition, not the currency market.

It’s not enough to be different.

The FX industry has become heavily commoditised and corporates are therefore right to be sceptical when it comes to foreign exchange providers claiming to offer something different – ourselves included!  Ultimately, being different is only relevant if it’s adding value and this is decided not by us, but by our clients and investors.

  • JPMorgan
  • M&G Investments
  • Old Mutual
  • Soros
  • Close Brothers
  • AXA
  • Berenberg
  • Marlborough
  • Hargreave Hale
  • JOHambro
  • Unicorn Asset Management
  • Octopus Investments
  • Jefferies
  • River and Mercantile
  • Jupiter
  • Chelverton Asset Management

Find out more.

To find out more about the different ways we can support your business, read our approach.

For examples of the clients we work with and to hear what they’ve said about us, read our testimonials.

The elephant in the room.

There is no shortage of advice or opinions on where exchange rates are going.  However, for those responsible for deciding how to manage their currency exposures, the elephant in the room is obvious – in the long-term, nobody can reliably predict the currency market.

Institutions therefore have two options: do nothing, and leave the investment exposed to currency risk or implement a currency management strategy.

The value of certainty vs the cost of securing it.

Whilst implementing a currency management strategy is typically the most logical option, it can often be time consuming and expensive.  At the same time, an effective strategy for many requires hedging which can also create further problems in terms of liquidity.

Understandably, if the time and cost of implementing a currency management strategy balances out against, or even outweighs the protection it provides, investment managers are right to question its value.

Tipping the balance.

At Alpha, we’ve honed our to approach to ensure the value of our currency management strategies far outweigh the time and cost of implementing them.

The way we do this is simple;  at no upfront cost  we devise a strategy that enables investment managers to achieve the certainty they desire and protect their investment’s performance.  With the value of this strategy evidenced, we then provide support and technology that ensures adopting and maintaining it is simple, cost-effective and supportive of their cash flow requirements.

It’s not enough to be different.

We’re aware that everyone claims to be different in our industry.  We’re also aware that externally, the common perception is we’re all the same.

Whilst naturally we don’t think this is the case, we ultimately believe it’s the companies we are associated with that best illustrate we are doing something different.  These include our investors (a selection of which are below) and our clients, whose testimonials you can read here.

  • JPMorgan
  • M&G Investments
  • Old Mutual
  • Soros
  • Close Brothers
  • AXA
  • Berenberg
  • Marlborough
  • Hargreave Hale
  • JOHambro
  • Unicorn Asset Management
  • Octopus Investments
  • Jefferies
  • River and Mercantile
  • Jupiter
  • Chelverton Asset Management

 

Find out more.

To find out more about the different ways we can support your business, read our approach.

For examples of the clients we work with and to hear what they’ve said about us, read our testimonials.