A June 2026 survey finds 94% of US and Canadian fund managers now hedge their foreign-exchange exposure, up from 85% a year earlier. Nearly all respondents report taking losses from unhedged positions, and most plan to lengthen their hedge tenors as geopolitical and trade tensions persist.
Nearly every mid-sized fund manager in North America now actively hedges currency risk, according to a survey from financial technology and cash-management firm MillTech. The finding points to how nervous institutional investors have become about geopolitics, trade disputes, and unpredictable central bank policy.
Hedging jumps to 94%
The survey, conducted in June 2026, found that 94% of US and Canadian fund managers are hedging their forecastable foreign-exchange exposures, up from 85% a year earlier. It captured responses from 250 firms managing between $500 million and $20 billion in assets. Smaller funds are hedging more aggressively than larger ones: those managing $500 million to $1 billion hedge at 98%, compared with 88% for larger funds.
The cost of staying unhedged
A full 97% of managers said they had suffered losses from unhedged FX exposure, with the average hit at $731,000. But hedging itself is not free: as demand for hedges rises, so does the price of maintaining them, and rolling forward contracts eats directly into returns when interest rate differentials between countries are wide.
Longer hedges signal lasting caution
More than half the respondents plan to extend the length of their currency hedges, with roughly 63% identifying longer hedge tenors as a necessary adjustment to current volatility. Locking in longer-dated hedges signals that managers don't expect the turbulence to resolve quickly. The drivers behind the shift include geopolitical uncertainty, escalating trade disputes, shifting central bank policies, and Middle East instability.
Managers are, in effect, choosing a known cost over an unknown risk.
Source: Crypto Briefing
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