Skip to search boxSkip to navigationSkip to main content

Institutional Investors and Foreign Exchange Risk

Research Output: Contribution to journal Article Peer-review

Abstract

We study institutional appetite for stocks with FX exposure, and find variation among institution types. Institutions that are by their nature more likely to engage in active management of foreign exchange risk in their portfolio, namely mutual funds and hedge funds seek stocks with foreign exchange exposure. Institutions that are constrained by regulation tend to avoid foreign exchange exposure.