This is just a quick note in reaction to the recent announcements by JPMorgan about $2 billion (and counting) trading losses emanating from hedging activities within the bank’s Chief Investment Office. Since hedging is our core business, we at Chatham Financial certainly hope the lesson the world takes away from these revelations is something like “Hedging is something you really need to do properly, or else you could make headlines for all the wrong reasons.” But to be clear, we don’t consider these headlines free advertising. Hedging has no business being on the front page of any newspaper. It is a practice associated with prudent and responsible financial management for many organisations and businesses. Well designed and executed hedging programmes are good for shareholders in that they remove or mitigate unwanted financial risks so that the managers can focus their…

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