BlackRock Shuts Down Global Macro Hedge Fund
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Global Macro isn't making the returns it once made, just look at the returns of some of the big Macro funds. Why, I don't know. Although I'd guess it's related to lack of volatility and lack of movements from central banks.
Seemed like an interesting post, shame it didn't get any attention. I'd be interested to hear the opinions of some of the experienced members on this.
There are many high-profile hedge funds that have closed since I posted this. The lack of attention I got for this post made me decide against posting anything else (not sure people really care).
Maybe, although why they closed down is interesting as well as the question of when/if the strategy will become profitable again.
Either way, I don't think 2 MS was justified.
1) Macro is harder now 2) Probably couldn't sell the product well enough
And why is Macro harder?
Volatility has gone up (partly because liquidity has declined) and it appears that neither the investors nor the managers know how to deal with that. Read Mark Dow's old post about macro, it's even more relevant now than it used to be when he originally wrote it.
Yep this post is golden: http://markdow.tumblr.com/post/29342504820/why-are-global-macro-hedge-f…
Mark Dow was a PM at Pharo.
Do macro funds deal with volatility or is that another class of funds?
That is a really really cool post! Thanks allot.
So in the modern day, where are the 'Old School Macro' players? Or are there just no organisations willing to accept the turbulent P&L that comes with it?
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