July 08, 2006

Global Macro Funds

Global macro funds are a type of hedge funds that deal with the changes in global macroeconomics. They constitute 9 percent of the hedge fund world and have high risks associated with them. They consider the impact of currencies, interest rates, commodities, and stocks all over the world. There are two types:

  • Discretionary or Trend-Predictive: These funds depend on the ability of fund managers to predict and analyze events such as the rise and fall in currency exchange or interest rates that affect the markets one way or the other.
  • Systematic or Trend-Predictive: These funds follow the course of events before taking investment decisions.

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