Rising Fed rates, a 10 year Treasury yield near 5.17% and a stronger dollar have pushed currency risk from the fine print to the front page. That shift can punish some holdings, yet it can also reward investors who pay attention to how companies handle foreign exchange. This article examines three stocks from our Global Currency Hedged Equity Funds and FX Risk Management Providers screener that may be positively exposed to this backdrop.
The three stocks below are a sample from a wider pool, and the full screen surfaced 8 more companies with equally compelling currency hedging and FX risk stories that are not covered here. To see the complete opportunity set, head straight into the Global Currency-Hedged Equity Funds and FX Risk-Management Providers screener to analyze, compare, and identify your highest conviction ideas.
Tatton Asset Management (AIM:TAM)
Overview:Tatton Asset Management runs on-platform model portfolios for UK financial advisers, allocating across funds and ETFs, including currency-conscious international exposures.
Operations:Tatton Asset Management generates about £47.6 million from its Tatton segment and £6.8 million from Paradigm, with £54.3 million earned in the UK.
Market Cap:£390 million
Tatton Asset Management matters for this FX-focused screen because its discretionary portfolios sit exactly where many UK investors feel currency swings most sharply.
"Although the rise of outsourced portfolio management through IFAs supports ongoing AUM growth, the decision to remain IFA only and avoid direct to consumer distribution limits addressable market expansion and may cap long term revenue and earnings potential relative to more diversified competitors."
What happens if a single pressure point around fee levels and service breadth starts to reshape how advisers allocate clients into hedged solutions?
That inflection point is exactly what the full narrative for Tatton Asset Management unpacks, showing how Tatton Asset Management could turn fee pressure into accelerating share of outsourced portfolios.
Blue Owl Capital (OWL)
Overview:Blue Owl Capital is a US alternative asset manager that provides permanent capital and private financing solutions across credit, real estate, and GP stakes. This gives it a direct link to currency and funding risks in global private markets.
Operations:Blue Owl Capital generates about US$3.0b from asset management services, with all reported revenue sourced from clients in the United States.
Market Cap:US$14.5b
Blue Owl Capital matters for this FX themed screen because its permanent capital and private credit platform frequently touches multi currency financing and cross border investor flows, even though the firm is primarily US based.
"Significant ongoing growth in permanent capital vehicles, particularly through expansion in private credit, real assets, and evergreen/interval fund strategies, is providing stable and recurring management fee revenue and positioning Blue Owl for higher future earnings and durable margin expansion."
What happens to those margin ambitions if one unseen pressure on funding costs and credit risk tilts against Blue Owl Capital at scale?
If that funding squeeze is the real swing factor, the full narrative for Blue Owl Capital shows how Blue Owl Capital could still convert FX crosswinds into accelerating fee power and fresh upside optionality.
Ninety One Group (LSE:N91)
Overview:Ninety One Group is an independent global asset manager running international and emerging market portfolios where currency and FX risk matter for clients.
Operations:Ninety One Group earns £650.2 million from its Investment Management Business, mainly sourced from the UK, South Africa and other global clients.
Market Cap:£2.0b
Ninety One Group belongs in this FX focused screen because its global active mandates often sit right where currency swings hit long term portfolios hardest.
"Reaccelerating demand for active strategies, particularly in international and emerging market equities and fixed income, positions Ninety One to capture higher fee bearing flows and sustain revenue growth as net inflows build on the recent GBP 4.3 billion turnaround."
What happens to that improving picture if one unseen pressure on client risk appetite and cross border flows shifts again at scale?
When that shift hits client behavior at scale, the full narrative for Ninety One Group shows how Ninety One Group could turn FX swings into accelerating flows and resilient fee power.
Seeking Fresh Alternatives Before They Fly
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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