Hedge funds that bet on bonds, currencies, stocks and commodities are among the industry’s biggest winners this year easily outpacing growth and tech funds’ returns and preparing to see significant inflows of capital as the stock market hovers near bear market territory.
So-called global macro funds returned 10.3% in the first four months of the year while the average hedge fund inched up 1.9%, according to data from Hedge Fund Research. The Standard & Poor’s 500 index tumbled 13% in that period.
Now with inflation surging and volatility ticking higher as central banks reverse years of monetary stimulus, the environment looks to be especially good for global macro funds.
“This environment will most likely lead to new inflows of capital to the strategy at the expense of other funds,” said Eamon McCooey, head of prime services at Wells Fargo.