Macro Hedge Funds Generate Fewer Returns Than Expected

December 13, 2011 James Heinsman Hedge Fund News

Macro hedge fund managers are grappling with the global economic status, and struggling to generate returns on par with their previous successes.

This past year has seen very rough waters, including the euro zone debt crisis and sweeping central bank action. Veteran hedge fund managers were mostly expected to record the highest profits in the industry, but many were left disappointed.

“For many macro guys, the retention of profits has been poor. It’s not a world in which macro funds have covered themselves in glory,” said Luke Ellis of Man Group. “Overall it’s been disappointing.”

Macro funds try to predict significant global news events, wagering money on bond, currency, commodity and equity assets in all markets which are liquid enough for such transactions.

Also struggling are emerging markets such as Moore Capital’s emerging markets macro fund. Moore, Caxton and Tudor have not commented.

“If you look over the long term at other episodes of deleveraging and other episodes where politics have influenced market pricing, macro managers have proved capable of generating profits for their clients,” said Sukie Darar, a research analyst at Stenham Asset Management. “But quite frankly, this year the macro managers haven’t always got it right.”

Debt Crisis, Euro Zone, global economy, Hedge Funds, Luke Ellis,

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