Ep 5: Hedging in Practice: What the Data Is Telling Us | News & Insights | Validus Risk Management
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Ep 5: Hedging in Practice: What the Data Is Telling Us

19 April 2026

Summary

In this episode of The Validus View, Kevin Lester is joined by Nirvani Sookdeo and Pamela Youssef to discuss how hedging practices are evolving, drawing on Validus proprietary data from hundreds of private capital funds.

Key Takeaways

  • Hedging is now a core part of portfolio construction, not just a defensive tool
  • The impact of FX exposure on returns can vary significantly depending on fund structure, exposure levels and asset class
  • Liquidity risk is a key driver of hedging strategies, particularly in relation to mark-to-market and collateral requirements
  • Open-ended fund structures are pushing managers toward more flexible, shorter-dated hedging strategies
  • Data quality and real-time visibility remain key challenges, with increasing focus on technology-driven solutions

 

The conversation explores how managers are approaching key decisions in their hedging programs such as instrument selection, hedge tenor and liquidity management. While FX forwards remain the most widely used tool, the discussion highlights how strategies vary significantly depending on asset class, expected returns and fund structure.

Looking ahead, the episode also considers how structures such as open-ended funds are influencing hedging decisions. With a greater focus on FX exposure and real-time data, managers are increasingly looking to build more flexible hedging approaches that can adapt to changing market conditions.

Tune in to the full episode

Hosted by:  Kevin Lester, Co-Founder & Chief Executive Officer
25 minutes

Listen on Spotify Listen on Apple Podcasts Watch on YouTube

Who should listen

This episode is relevant for fund managers and investors with cross-border portfolios who are navigating FX exposure as part of their overall investment strategy.

It will be particularly useful for teams across private equity, private credit, real estate and infrastructure, as well as institutional investors and portfolio company teams looking to better understand how peers are approaching hedging in practice.

Behind the Mic: Host & Guests

Kevin Lester

Kevin Lester

Chief Executive Officer

Nirvani Sookdeo

Nirvani Sookdeo

Director, Global Head of Risk Advisory

Pamela Youssef

Head of Risk Advisory (Europe)

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