Global macro hedge funds beat peers in volatile times

Global macro funds outperformed most other hedge fund strategies in the third quarter of 2011 as bearish bets on commodities, equities and the euro started to pay off.

Hedge funds running macro strategies were down 0.86% compared with losses of 1.93% for the industry generally, according to Hedge Fund Research. The stronger third quarter marks a reversal of fortune for macro funds, many of which struggled in the first half of the year when political and economic uncertainty created a difficult environment for directional traders. As governments came under growing pressure to show monetary and fiscal restraint in the third quarter “investable trends developed and the fundamental outlook became more accurately reflected in the pricing of financial a...