Supported by the continuous repositioning of the global economy and remarkable performance of macro strategies in such environments, the global macro strategy is all set to make a huge rebound. The macro hedge funds like Tudor Investment Corp., Moore Capital Management and George Soros' Quantum Fund, which once grabbed a 60% pie from the industry assets, plunged below 10% in recent times, have again started heading northwards. Mr. Castelli, the former macro portfolio manager with French group ADI Alternative Investments, expects the macro HFs to fetch a proportion of 25% to 30% in the industry assets.

According to Mr. Castelli, the global macro HFs are expected to outperform in the near future, even with the negative sentiments spread across the entire industry. However, the rebound of macro funds will be felt more on the niche’s goliaths like Brevan Howard Asset Management LLP which is expected to grow its AUM to approximately USD 60 bn from the current USD 26 bn in the next few years.

The economic cycle over the past 10-plus years was not suitable for macro investing style; however in recent times, those strategies like arbitrage that fetched in better results are stumbling. Under macro strategy, there is no limit to the money one can manage and with the substantial growth in the capacity to manage more funds; the turning point of “global macro” strategy is quite evident.

 

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