Macro Funds Basking While Others Wallow — Why?
Hey all, I’m interested in hearing your views as to why macro funds as a class seem to have outperformed so much year-to-date? I would guess that funds employ a strategy that depends on their views of economic and political trends — and macro risks have been paramount this year, but shouldn’t there be a group of macro funds that bet on further stability and low inflation? Conversely, if funds were betting on high volatility across macro risk factors, would these funds have underperformed in the past decade of stable economic trends?
Macro is dominating the near-term narrative.
Macro should do well when the VIX is above 20. Macro funds have been debating inflation has been coming since 2010, no way anyone said inflation is low coming into 2022.
Macro funds have the optionality to trade any liquid asset. They have not been locked into a specific strategy/factor/asset which may suffer in this macro environment. They have placed some good trades on both long and short side. You must have read about some of them in the press such as Bridgewater shorting European stocks, etc.
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