Success Stories

Real-world examples of how we've helped businesses mitigate currency risk

At RocFX, we measure our success by the results we deliver for our clients. The following case studies demonstrate how our tailored currency risk management solutions have helped businesses across various industries protect their financial performance, improve decision-making, and create competitive advantages.

While each client's situation is unique, these examples illustrate our consultative approach and the tangible benefits that effective currency risk management can provide.

Tech Startup

Protecting SaaS Revenue Across Global Markets

Client

A rapidly growing SaaS company with customers in 30+ countries

Challenge

Significant revenue volatility due to unhedged foreign currency subscriptions

Solution

Implemented a layered cash flow hedging program with quarterly adjustments

Result

40% reduction in earnings volatility and improved forecasting accuracy

The Challenge

This fast-growing SaaS company was experiencing significant quarter-to-quarter revenue volatility due to currency fluctuations. With 65% of their subscription revenue coming from outside their home market, the company's financial performance was heavily impacted by exchange rate movements, making it difficult to forecast accurately and meet investor expectations.

Our Approach

After conducting a comprehensive FX Risk Diagnostic, we identified that the company's primary exposure was to the Euro, British Pound, and Japanese Yen. We designed a layered cash flow hedging program that:

  • Protected a higher percentage of near-term revenue (80% for the upcoming quarter)
  • Applied a declining hedge ratio for future quarters (60% for Q2, 40% for Q3, 20% for Q4)
  • Utilized a mix of forward contracts and option strategies to balance protection with flexibility
  • Incorporated a systematic approach to adjusting hedge positions as new subscriptions were added

We also worked with their finance team to develop improved forecasting methodologies and reporting tools to better track currency impacts on their business.

The Results

Within two quarters of implementing the hedging program, the company experienced:

  • A 40% reduction in currency-related earnings volatility
  • Improved forecasting accuracy, with actual results consistently falling within 3% of projections
  • Enhanced investor confidence, as demonstrated by reduced stock price volatility following earnings announcements
  • Greater pricing flexibility in competitive markets, as the company could maintain consistent local currency pricing without sacrificing margins

The CFO reported that the program "transformed currency risk from a source of anxiety to a manageable aspect of our financial operations," allowing the executive team to focus more on strategic growth initiatives.

Tech Startup Case Study
Manufacturing

Stabilizing Supply Chain Costs

Client

A mid-sized manufacturer with global supply chain and domestic sales

Challenge

Unpredictable input costs due to currency volatility affecting competitiveness

Solution

Balance sheet hedging strategy aligned with procurement cycles

Result

30% improvement in gross margin stability and enhanced pricing power

The Challenge

This manufacturer sourced components from suppliers in Asia and Europe while selling primarily in their domestic market. Currency fluctuations were causing significant volatility in input costs, making it difficult to maintain consistent pricing and margins. The company was losing bids to competitors who could offer more stable pricing, and their financial performance was becoming increasingly unpredictable.

Our Approach

We developed a comprehensive balance sheet hedging strategy that:

  • Aligned hedge durations with the company's procurement cycles and contract terms
  • Implemented a systematic approach to hedging payables as soon as purchase orders were issued
  • Created a risk management policy that defined clear roles, responsibilities, and approval processes
  • Established key performance indicators to measure the effectiveness of the hedging program
  • Provided training for the procurement and finance teams on currency risk management principles

We also worked with the company to incorporate currency considerations into their supplier negotiation strategy, resulting in more favorable payment terms and risk-sharing arrangements with key vendors.

The Results

After implementing the hedging strategy, the company achieved:

  • A 30% improvement in gross margin stability quarter-over-quarter
  • Enhanced ability to provide fixed-price quotes for longer periods, increasing their competitive advantage
  • A 15% increase in bid win rate due to more aggressive and confident pricing
  • Improved cash flow forecasting accuracy, enabling more efficient working capital management

The CEO noted that "stabilizing our input costs through effective currency management has been transformative for our business, allowing us to focus on quality and customer service rather than constantly adjusting prices to maintain margins."

Manufacturing Case Study
Investment Fund

Optimizing Multi-Currency Portfolio Returns

Client

A private equity fund with investments across multiple countries

Challenge

Currency volatility masking underlying investment performance

Solution

Customized investment hedging framework with dynamic adjustment mechanism

Result

25% improvement in risk-adjusted returns and enhanced investor reporting

The Challenge

This private equity fund had a diverse portfolio of investments across North America, Europe, and Asia. Currency fluctuations were significantly impacting the fund's reported returns, making it difficult to evaluate the true performance of underlying investments. Investors were increasingly concerned about currency risk, and the fund managers needed a more sophisticated approach to managing these exposures.

Our Approach

We developed a customized investment hedging framework that:

  • Separated currency effects from underlying investment performance for more accurate evaluation
  • Implemented a strategic hedging approach based on the fund's investment horizon and risk tolerance
  • Created a dynamic adjustment mechanism that responded to significant market movements and portfolio changes
  • Established a currency overlay program that optimized the cost-benefit trade-off of hedging
  • Developed enhanced reporting tools that provided greater transparency to investors

We also conducted training sessions for the investment team to improve their understanding of currency dynamics and how to incorporate currency considerations into investment decisions.

The Results

The implementation of the investment hedging framework delivered:

  • A 25% improvement in risk-adjusted returns through more efficient currency risk management
  • Enhanced ability to isolate and evaluate the performance of individual investments
  • Increased investor confidence, leading to a successful fundraising round that exceeded targets
  • More informed investment decision-making with currency factors appropriately considered

The Managing Partner commented that "the currency risk management program has not only improved our returns but has also become a differentiating factor in our investor communications. We now have a compelling story to tell about how we manage this important aspect of international investing."

Investment Fund Case Study

Ready to Achieve Similar Results for Your Business?

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