October 14, 2019

Hedge Fund Managers Say Global Macro Strategies Will Outshine in 2012

Of eighteen competing strategies, hedge fund managers chose global macro have the highest returns next year, reported Mia Lamar in Dow Jones Newswires this morning. http://on.wsj.com/qxIRNc

She reported that hedge fund mangers say global macro strategies will outshine in 2012. 

“They continue to see Brazil, China and India as the most rewarding regions for investing, according to a GAIM survey of 185 members of the hedge fund industry.

Asked reasons that a global recovery might be derailed next year, respondents cited a range of worries, with the Eurozone crisis, global monetary policy uncertainty and the US deficit topping the list.

More hedge fund managers think global macro will outshine 17 other competing strategies in 2012, the survey found. Of the 55 hedge fund managers who responded to the 2011 GAIM GMA Hedge Fund Sentiment Survey, 22% picked global macro, followed by event-driven (11%) and commodities-based strategies and U.S. long/short equity (9%).”

The BRIC countries have been growing steadily, with China trying to slow its growth and its high inflation. Methinks long BRICs, emerging markets, and shorting Europe and the US can make for a safe play. The leaders of both the US and Europe can’t agree on monetary policies which will continue to dampen growth. Fear abounds in the very existence of the Euro and even the dollar. (See gold for details.)

Hedge fund managers are paid to have better judgment than the indices they are measured against. Whether you’re a contrarian or you think there is wisdom in crowds, it pays to know what the best predictors predict. Bottom line: hedge fund managers say global macro strategies will outshine in 2012.


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