![]() One of the oldest hedge fund strategies, macro hedge funds struggled for years as trillions of dollars in central bank stimulus suppressed market volatility and pushed interest rates near zero, limiting their profit potential.īut they have largely enjoyed a revival since the start of the pandemic, with many like Caxton Associates and Braven Howard calling interest rates lower in 2020 to revive economic growth.Īnd while some funds, notably Rokus Capital and Oday, were hit hard by major bond market turmoil in the autumn of 2021, last year was the strongest for macro funds since the start of the financial crisis in 2007. One hedge fund recruiter said, “The demand for macro traders is exceptionally high, both in volume and discretionary”. ![]() ![]() And London-based Trium Capital, which launched a macro fund late last year, sees quantitative easing ushering in “a prosperous era for global macro,” according to co-chief executive Donald Pepper. New York-based MKP Capital is expanding its workforce as it tries to adapt to “structural changes” in the markets. Last month ExodusPoint Capital, which has $13 billion in assets under management, hired London-based Patrick Olsson, formerly chief investment officer at Nektar Asset Management, to run macro strategy. Schonfeld - which began building its presence in discretionary, or human-led, macro trading about two years ago - plans to hire aggressively as it further diversifies in the field. In February the Financial Times revealed that the multi-strategy hedge fund Schonfeld was hiring Bahamas-based macro manager Ben Melkman, a former star trader at Brevon Howard who until last year ran Light Sky Macro. The Connecticut-based firm recently hired an economist and a macro fund manager and is looking to add more investment professionals. “Macro markets are moving like crazy, last year was especially good and the opportunity set up is fantastic,” he added. “There has been a paradigm shift in interest in macro over the last decade, due in large part to central bank activity,” said Kenneth Tropin, chairman of $17.5 billion-in-assets Graham Capital, founded in 1994. Managers are bracing for an expected inflow of capital from investors looking for ways to protect their portfolios in an environment of volatile markets and dwindling support from central banks. ![]() US-based Schonfeld, Graham Capital and Exoduspoint are among the firms hiring in this space. Macro trading, a decades-old strategy made famous by the likes of George Soros and Louis Bacon, involves betting on movements in global bonds, currencies and other assets.Īfter years of tepid returns in markets dominated by central bank stimulus, sharp rate hikes followed a sharp cut in interest rates during the coronavirus pandemic and then a return to high inflation and the opening up of economies. Hedge funds are building up their firepower in global macro trading as they look to capitalize on the most attractive environment since the financial crisis. ![]()
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