Thought Leadership

Multicurrency Plus Strategy 2nd Quarter 2008

July 25, 2008

During the second quarter of 2008, the U.S. dollar appeared to stabilize as signs of crisis abated and markets appeared to calm.  In this environment, the modest dollar rally, muted as it turned out to be, led to a negative total return for our benchmark.  While we outperformed the benchmark by a modest amount net of fees, this benchmark-like performance masked the shifts in currency strategy that occurred as we began to position our portfolios for an environment where financial markets were healing, and the Fed’s easing cycle began to support domestic and foreign growth.