YC (US) < YC (GB) …int rate are high in GB than US…interest rate differentials tell us that US will depreciate & GB will appreciate

so american investor invested in britain= id - if < 0 , pays the interest differential if they hedge US dollar risk…so dont hedge

british investor invested in US = id - if > 0 , receives the interest differential…so hedge

However currency swings are large enough than interest rate differential, it is advisable to hedge currency risk even if you have to pay the interest rate differentials…