Emerging markets exchange rates are often set in response to conflicting policy goals, pulling central banks in multiple directions. This allows changes in currency value to be forecast on the basis of macroeconomic fundamentals. FDO developed an econometric model that keys off these fundamentals. It focuses on a number of macroeconomic, financial and behavioral variables that have proven both theoretically important and empirically effective in predicting returns. A key input is information on the investment flows and positioning of institutional investors. Developed currency risk inherited via emerging markets positions is hedged out within the process, so that the strategy focuses solely on pure emerging markets alpha. This also has the advantage that performance is invariant to the base currency of the investor. Assets reported are firm assets.