Global Macro Strategy

ABOUT GLOBAL MACRO STRATEGY

• A global macro strategy is an investment and trading strategy based on the interpretations and expectations of large macroeconomic events.

• It is an investment and trading approach that focuses on the analysis and interpretation of economic and political events on a global scale.

• For the successful implementation of a global macro strategy, fund managers analyze various macroeconomic and geopolitical factors.

• Global macro trading strategies typically revolve around analyzing and making decisions based on specific aspects, typically macroeconomic indicators, political events, and global trends.

TYPES OF GLOBAL MACRO STRATEGIES

• Currency Strategies. 

These are strategies that are based on the assessment of the relative strength of one currency against another. Currency strategies pay close attention to monetary policies and short-term interest rates in various countries.

• Interest Rate Strategies. 

This type of global macro strategy focuses on the interest rates of sovereign debts. In such a strategy, strong emphasis is placed on a country’s monetary policy, as well as its economic and political situation.

• Stock Index Strategies.

These strategies place attention on the performance of the equity index of a specific country. In addition to the stock indices, fund managers may use commodities indices. Stock index strategies are commonly executed using various derivatives on the equity indices.

GLOBAL MACRO FUNDS

• Discretionary Macro. 

The portfolio construction is based on the fundamental analysis of fund managers. It is the most flexible type of global macro fund in which fund managers may use all types of assets.

• Commodity Trading Advisor. 

The fund’s portfolio is constructed using price-based and trend-following algorithms.

• Systematic Macro. 

The assets are chosen based on fundamental analysis, but portfolio allocation is determined by trading algorithms.