Specifics of trading style in Macro hedge fund?
I'm well aware that a macro hedge fund is designed to 'trade globally based on economic theory' but I doubt that PM's at these funds are prepared to take long term trades founded purely on macroeconomic predictions, as this would result on very few trades and I imagine a low success rate (It's hardly easy predicting the future; just look how badly economists do it).
So what else is going on? What are traders at these firms actually doing? In reality are traders activelythe markets with a fundamentally technical perspective and occasionally supplement this outlook with a specific view of where the markets are heading? And if so, what separates this from the work of a day trader, except experience/technological support/resources?
I'm not trying to insult this industry, quite the opposite. Macro PM's are viewed as some of the smartest guys out there and the numbers themselves speak volumes about how successful these strategies can be (admittedly low volatility in the last couple of years has dampened profits but that looks likely to change). I just want to get a better understanding of their investment philosophy.
@Bondarb (You always seem to have very useful insights)