In 2003 we sent AUD25k to the US to buy a little USD12.5k share of a private company. Now they are wanting to pay us out, but we will only get AUD14k because the Aussie Dollar has strengthened so much against the Greenback since 2003. Obviously in the blinding glare of hindsight, we would have been wise to ignore the previous stability of the currencies and set up some sort of hedging arrangement to protect our investment.
Nevertheless, that's water under the bridge, and we are not going to eat one sandwich less because of it.
Now however, the company there wants to send US money to invest in our property deals in Oz. (Hooray!)
But as they are quite aware of my experience with currency fluctuations I'd like to get this Hedge Fund thing happening to protect their investment. However I have no idea how to go about this.
QUESTION: Can someone please point me to a website or other resource where I can learn how to do this? Even a couple of sources for such hedging would be great!
We are taking about an amount initially in the order of AUD100k to be protected from fluctuations. If this goes well for them they have more to send us, so clearly we want to make it work.