sorry im late to the party… if u hedge u are effectively saying hey i agree with the market… now if by your forecast u think the maket is too pessimistic then u will certianly not want to hedge…
bingo. got it now. I was just confused before by the fact that you have to hedge to get the market…I thought it was implied. guess not.
ok great now please explain it to me 
First thanks me.tega for the answer. “Bond investment are less volatile than foreign currency movements. Investors will only buy bond in a foreign market if the yields are high enough and will therefore hedge the foreign currency exposure in order to enjoy the higher yields. This is where breakeven analysis comes into play… I love CFA!” And I would like to clarify my wrong answer. The case should be if manager’s expected appreciation > calculated one or expected depreciation < calculated one, then no hedge in oder to beat the mkt. Meanwhile, sorry for posting wrong answer, as I have messed up & missed some concepts and need to recap them soon. Appreciate if U guys could understand… Many thanks, Lee