Macro hedge fund primer: uncovering the unconstrained

In summary

Macro funds typically take positions (either directional or relative value) in currencies, bonds, equities and commodities, based on fundamental and qualitative judgements. Investment decisions are usually based on a manager’s top-down economic and political views, such as views on economic growth, interest rates, inflation, government policy, and geopolitics. Relative valuations of financial instruments within or between asset classes can also play a role in the investment process. In this article we explore macro trading and provide insights into the most common macro strategies. For each macro strategy, we provide a description and sample trades and consider how the strategy has historically performed in different markets.