End of Macro?
Hey guys,
In light of the recent underperformance of the most famous macro managers, and the general trend towards lower cross-market correlations, lot of people have been talking about how the era of the macro mavens may be coming to an end. Thoughts, monkeys?
According to Hedge Fund Research, macro funds have the lowest correlations of any fund type, and macro funds have grown the most in the hedge fund space over the past 5 years. You could interpret the last point as a type of oversaturation/bubble bursting trend, but to answer your question I'm gonna have to go with no regardless. As long as there is macro-level disruption, there will be alpha opportunities
Seems to me like most of the market movement in the past few years has been macro driven, and I don't really see that changing in near future. That means that people who work in the space will probably see the most action in the next little while.
Markets have been extremely choppy since 2009. End of discussion.
beware this isnt the first time in my career i have heard about the "death of macro"...late 2006-2007 comes to mind and we know what happened next. Strategies move in cycles and generally when fixed income volatility is low as it is now macro tends to be a poor performer.
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