Global Macro

Global macro hedge funds primarily invest in securities linked to broad equity indexes, foreign exchange rates, interest rates, and commodity prices. The securities employed may be futures, forwards, swaps, options or other derivatives. As the name suggests, global macro hedge funds are interested in investment opportunities driven by changes in macroeconomic policies, the growth of economies, inflation and trade. Compared to other hedge fund strategies, both the level and sources of risk tend to be more variable for global macro funds.

Global macro is often confused with multi-strategy. While there are many pure global macro funds, it is also very common for a global macro portfolio to be part of a larger multi-strategy fund.


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