I.
No Hedge
Full FX exposure means annual currency moves flow directly into USD returns and earnings. For a fund, uncompensated NAV risk. For a corporate, unforecastable margin variance.
Consequence: Unmanaged return and earnings volatility
Global FX risk,
precisely managed.
A fully managed currency hedging service for funds protecting IRR and corporates defending operating margins — across emerging and developed market currencies worldwide. Five layers of proprietary intelligence. One weekly signal. A dedicated adviser throughout.
For Funds
Protect IRR.
Deliver returns to LPs.
For private equity, credit, and venture funds with assets in emerging and developed market currencies — FX moves show up directly in NAV, distributions, and the IRR you report to limited partners.
IRR erosion from currency depreciationUncertain capital call timing and exposure sizingNo systematic FX policy to present to LPsCarry costs that make full static hedges unviable
For Corporates
Defend margins.
Stabilise earnings.
For treasury teams managing revenues, costs, or intercompany flows across multiple currencies, unhedged FX exposure creates earnings volatility that boards and analysts scrutinise — and budget cycles impossible to defend with precision.
Operating margin compression from currency movesRepatriation risk across multiple jurisdictionsNo repeatable, auditable hedging processAd-hoc treasury decisions with no systematic signal
The Problem
Three approaches.
Three failures.
Every fund manager and treasurer with currency exposure faces the same impasse. The conventional options each carry a structural cost that compounds — across currencies, across cycles.
II.
Static Hedging
Hedging at full notional incurs structurally elevated carry costs. For a fund, this drags on IRR. For a corporate, it erodes the operating margins the hedge was meant to protect.
Consequence: Carry cost that compounds across cycles
III.
Discretionary Hedging
Manual, judgement-based hedging replaces one risk with another. Without a rigorous signal, decisions become reactive, poorly timed and impossible to audit or defend to LPs.
Consequence: Timing risk and no defensible process
The Deaglo Approach
Precision-calibrated.
Signal-driven.
Rather than forcing a choice between fully hedged and fully unhedged, Deaglo operates across a continuous, calibrated spectrum — adjusting hedge ratios, tenors, and structures as market conditions evolve.
The system determines when to hedge, how much, and which structure to use — protecting returns and earnings while keeping total hedging cost as low as possible.
Weekly Output Signal
ACT
WAIT
When the signal reads ACT, your adviser delivers a fully documented recommendation — hedge ratio, instrument, tenor, and market rationale. Ready for your investment committee or treasury board.
FX ForwardCollarVanilla OptionForward Extra
Intelligence Architecture
Five layers.
One clear signal.
The system runs every week, evaluating your currency exposure across five proprietary intelligence layers — calibrated individually to each currency and market.
- I
Market Regime Detection
Is the currency overvalued or undervalued? Is volatility elevated or compressed? Is the trend running against your position? Layer one answers these questions for every currency, every week.
- II
Simulation Engine
5,000 FX path scenarios calibrated to the specific volatility, liquidity, and rate environment of each market — quantifying the probability-weighted range of outcomes your fund or balance sheet faces.
- III
Expert Intelligence
Live market data combined with adviser judgement — ensuring recommendations reflect real-world dynamics of each specific market, not just the output of a model.
- IV
Structure Optimisation
What is the lowest-cost instrument combination adapted to each market's liquidity and tenor? Layer four identifies the optimal structure across forwards, collars, vanilla options, and forward extras.
- V
Decision Surface
All prior signals converge here. The output: act now at this hedge ratio and tenor, or wait. A single documented recommendation complete enough to present to an investment committee or treasury board.
The Complete Service
From signal to settlement.
Entirely managed.
Every stage of the hedging process — analysis, recommendation, execution, reporting — handled by Deaglo on your behalf, across every currency in your portfolio.
Advisory
TechnologyI
A Named Adviser on Your Mandate
One person who understands your fund structure or treasury policy, your specific currencies, and your risk tolerance. Present at your investment committee or board reviews when it matters.
II
IC and Board-Ready Reporting
Every weekly briefing structured for direct delivery to an investment committee or treasury board — market regime narrative per currency, ACT or WAIT rationale, scenario analysis, and full audit trail.
III
Execution Managed End to End
From instrument selection to counterparty coordination to settlement confirmation — Deaglo manages the full execution chain. Nothing is left for your team to chase.
IV
Live Multi-Currency Visibility
Fund managers see hedged and unhedged NAV attribution across all currencies in real time. CFOs see operating margin impact by currency and region.
V
Onboarding Built Around Your Structure
Setup designed around your entity structure, fund vehicle, or treasury framework — with exposure mapping, hedging policy design, and counterparty documentation before the first trade.
VI
Calibrated as Your Exposure Changes
As capital is called, new markets entered, or your operating footprint evolves, the framework adjusts. The model reflects your actual live exposure — not a static snapshot from onboarding.
Cost of Carry
Carry cost across
emerging & developed markets
Indicative annualised forward carry for a USD-based investor — derived from forward points and spot rates via the Deaglo R&D API. Negative values indicate the investor earns carry on the hedge.
Frequently Asked Questions
Questions funds and
corporates ask us most
Precise answers to what treasury teams and fund managers need to know before deploying a systematic hedging programme.
For a fund with unhedged currency exposure, annual FX volatility flows directly into USD-denominated NAV and distributions. Over a 5–7 year fund cycle, compounding currency moves can materially reduce the IRR reported to LPs, independent of underlying asset performance.
Deaglo covers emerging and developed market currencies. Emerging: Africa (ZAR, NGN, KES, GHS, EGP), South Asia (INR, PKR, BDT, LKR), Latin America (BRL, MXN, COP, CLP, PEN). Developed: G10 currencies including USD, EUR, GBP, JPY, CHF, AUD and CAD.
Static hedging creates over- or under-hedging as exposures shift and incurs compounding carry costs that drag on returns. Precision dynamic hedging adjusts the hedge ratio, tenor, and instrument structure weekly in response to live market conditions — protecting returns while keeping total hedging cost as low as possible.
Dynamic currency hedging adjusts the hedge ratio, tenor, and instrument structure in response to live market conditions rather than maintaining a fixed static hedge. It operates across a continuous spectrum, sizing hedges based on weekly signals covering market regime, volatility, fair value deviation, and exposure certainty.
Every week Deaglo evaluates your currency exposure across five layers: Market Regime Detection, Simulation Engine (5,000 FX scenarios per currency), Expert Intelligence, Structure Optimisation, and Decision Surface. Output is ACT or WAIT. If ACT, the recommendation specifies structure, tenor, hedge ratio, and full rationale.
For corporates with multi-currency revenues, costs, or intercompany flows, unmanaged FX exposure creates earnings volatility that is difficult to explain to boards and analysts. A systematic hedging programme replaces this uncertainty with a structured, defensible process.
Private equity exposures are uncertain in timing, size, and duration. A static hedge over a fixed notional creates over- or under-hedging as capital calls and distributions shift. Full hedges also incur carry costs that drag significantly on IRR over multi-year fund cycles.
Deaglo selects from four instrument types adapted to each market's liquidity: FX Forwards, Collars, Vanilla Options, and Forward Extras. Every selection is documented for fund governance or treasury audit purposes.
Deaglo
Funds & Corporates
Stop leaving
FX to chance
Whether you are protecting fund IRR or defending operating margins — speak with a Deaglo adviser to assess your current currency exposure and what a systematic precision dynamic hedging programme would mean for your returns.