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EM currency hedges for long-term equity positions - strategies?
Been diving deeper into EM equities, specifically countries with higher inflation and more volatile currency regimes. When holding for longer terms, say 1-3 years, how are you all handling the currency risk? I've mostly stuck to developed markets where this isn't as pronounced. Do you hedge a portion with forward contracts, or use options, or simply accept the $EMFX volatility as part of the game? My concern is seeing good local returns eroded by a depreciating currency. Any thoughts on practical, cost-effective strategies for smaller positions would be appreciated.