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Global macro


Global macro funds implement opportunistic trading strategies to take advantage of shifts in macroeconomic trends. It is the least restricted of all the major hedge fund styles and is often referred to as a ‘go anywhere’ strategy which can potentially create positive investment returns independently of the direction of capital markets, the momentum of the macro economy or shifts in the commodities cycle.

Trading strategies are applied to a spectrum of markets, asset classes (stocks, bonds, currencies, commodities) and financial instruments (such as cash, futures, derivatives). Managers reach investment decisions based on their forecasts and predictions of changes in interest rates, inflation, economic cycles and political circumstances.
Once they have identified trends, global macro managers establish positions (long or short) in stocks, bonds, currencies and commodities.



Illust.: Global macroeconomic movement



The trading approach is opportunistic and nimble, focusing on the use of highly liquid instruments to facilitate rapid changes in positioning as older trades are reversed and new opportunities are identified.


Sub-strategies

The global macro style encompasses managers that are active in global trading, emerging markets and currencies.



Illust.: Global macro – sub-strategies



Arguably, the most significant advantage of global macro hedge funds is their unrestricted trading remit. As individual markets undergo cycles of growth and decline, more focused hedge fund strategies will also experience cycles of profitability. Global macro managers, however, take advantage of these cycles by shifting positions to wherever profits are available at a certain time.

As with any investment, funds can lose money as well as profit. Investors should always seek professional advice before considering any investment.

Please note some of these investment solutions and/or strategies may not be offered in your jurisdiction or may significantly differ from those offered in your jurisdiction.

Global macro
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