Global Macro Strategy

Global Macro Strategy

A hedge fund strategy that bases its holdings--such as long and short positions in various equity, fixed income, currency, and futures markets--primarily on overall economic and political views of various countries (macroeconomic principles).

Notes:

For example, if a manager believes that the U.S. is headed into recession, then he or she might short sell stocks and futures contracts on major U.S. indexes or the U.S. dollar. Or, a manager seeing big opportunity for growth in Singapore might take long positions in Singapore's assets.

See also: Event Driven Strategy, Hedge Fund, Long-Short Equity, Macroeconomics