What Is A Global Macro Hedge Fund?
When it comes to hedge funds’ activity, it should be noted that they may use different complicated strategies (e.g. investing in impaired assets, relative value strategy etc.) for existing and getting incomes. One of such strategies is global macro.
It is worth to admit that, according to Burnstein (1999), global macro has a directional component that is strongly subjective. It means that global macro hedge funds explore the tendencies connected with the changes at the international market or in economic politics of different countries, and most decisions in such hedge funds are based directly on learning global macroeconomic indicators and financial specifics (such as exchange rates, raw material prices, global interest rates etc.). With that, activity of a global macro hedge fund consists of foreseeing, analyzing and promoting the ideas of how these macroeconomic elements may change in future and then taking a risk to invest in their instruments.
Except for professionalism and good experience, the specialists who work for global macro hedge fund should be able to risk and be brave. The main task of them is to predict and even guess what is coming in future with the macroeconomics and successfully promoting their ideas and predictions further on.
Nevertheless, according to the statistics, all global macro hedge funds are only 5% of all the hedge funds worldwide. However, according to Gliner (2014), some of the most famous hedge fund managers have emerged from global macro. More than that, in future the situation is possible to change because for the last time the regional situations in different countries tend to influence the international market much, and as global macro hedge funds concentrate and cash on such movements, they have a better chance to succeed.
Work citied
1. Burnstein, Gabriel (1999) “Macro Trading and Investment Strategies”. John Wiley & Sons.
2. Gliner, Greg (2014) “Global Macro Trading: Profiting in a New World Economy”. Bloomberg Financial.
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