Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:The Brexit Hedge, Fundster Style Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, July 11, 2016

The Brexit Hedge, Fundster Style

News summary by MFWire's editors

The finance chief of a multinational, publicly-traded asset manager with big business in the United Kingdom is winning public recognition for hedging about 75-percent of the mutual fund shop's pound-based income against Brexit fallout.

Justin Baer and Sarah Krouse of the Wall Street Journal report that Invesco chief financial officer Loren Starr "bought a series of put options on the pound aimed at insulating the firm's earnings from the currency's declining value against the U.S. dollar." Thanks to UK voters choosing to leave the European Union, "those hedges are now worth more than $20 million."

"Right now we're feeling like we've got a good long year worth of protection and we're going to enjoy it," Starr tells the paper.

Kenneth Hill, an analyst at Barclays, tells the WSJ that he doesn't "recall anyone else hedging that explicitly."

The paper notes that last year the UK accounted for about 21 percent of Invesco's revenue. Mister Market has thus punished Invesco in the wake of the Brexit vote. Invesco's shares fell 19.5 percent in the first four days after the vote, though they've since bounced back a bit; as of Friday, July 8 at market close, Invesco's shares were down 10.91 percent since the vote, compared to rises of 2.06 percent for the Dow and 2.12 percent for the S&P 500. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use