Institutional Investors have an appetite for global macro hedge funds

by Amy Bensted

  • 26 Apr 2010
  • HF

The global macro strategy maintains a strong appeal for institutional investors in 2010, with 20% of the Hedge Fund Investor Profiles universe, or 503 institutional investors, stating an active preference for such vehicles. Macro is the third most popular single strategy on the Preqin database. Following the market downturn, there was a surge in opportunities for macro strategies and 2009 closed with strong returns for global macro funds. A wide range of institutional investors, across fifteen different investor types, have some exposure to macro hedge funds. The three largest groups are fund of hedge funds, followed by public pension funds, and thirdly endowment plans. Government agencies, foundations and banks are other groups of large investors in the sector, investing in macro strategies both directly and through funds of hedge funds.

Macro strategies are popular worldwide – Preqin monitors institutional investors from 34 countries across the globe that state a preference for macro hedge funds. The largest source of global macro investors are from the United States, currently 291 investors or nearly 60% of the investor universe. Europe is also an important source of capital for a global macro manager, particularly from the large fund of hedge funds being managed in the UK and Switzerland.

For more information on Preqin Hedge Fund intelligence see Hedge Investor Profiles

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