Global macro

November 2022

Global macro strategies have been around for decades. While no two strategies are the same, this group of strategies has evolved over time and is characterized by a number of similar characteristics. First is the broad opportunity set in which they operate, which includes, equities, bonds, currencies, and commodities. Second is the strategies they employ in these respective universes. Third, and perhaps most important for many investors, is the return profile they generate.

Global macro managers tend to offer low correlation, lower volatility, and lower drawdowns relative to equities. While they have not typically kept up with equities during benign and bull markets, they tended to serve as a hedge against bear markets. This can make global macro a valuable investment strategy for a portfolio, especially when paired with other risk mitigating strategies.