The text below from the announcement suggests they will not open...

The text below from the announcement suggests they will not open up foreign exchange exposures. They are betting on whether one company's share will do better than another. The example given at the briefing was investing in 2 Canadian gold companies, one expected to do better than the other, rather than a Canadian and Australian company where the outcome could be influenced by what happened to the exchange rate. The extract below suggests if they did the latter they would offset the exchange rate risk. That is they will not make or lose money on exchange rate fluctuations as I understand the strategy, but only on the movement in the company share prices. The currency risk is hedged, or offset by where cash holdings are held.

"Watermark looks to balance long and short positions in particular regions resulting in a hedged currency exposure. Where it has an unhedged position, it can reallocate cash holdings to a foreign currency to maintain a neutral exposure. The Board is confident that Watermark has developed appropriate risk controls in respect of its international investments."