Investors Targeting Global Macro Funds

by Graeme Terry

  • 12 Sep 2011
  • HF

Preqin currently tracks 729 investors that are actively investing in or targeting global macro funds. Of these investors 56% are based in North America, 36% in Europe and 8% in Asia and Rest of World. Global macro funds continue to be popular amongst institutional investors and a number of investors have plans to increase their exposure to this area over the next 12 months.

Global macro strategies are most popular amongst funds of hedge funds with almost 50% of funds of funds on the Preqin database indicating this as a strategy preference. US-based fund of hedge funds manager EIM Group is an example of an investor likely to be active in this area over the next 12 months as it looks to add funds to its existing portfolio. Global macro funds are also popular amongst public pension funds (28%), asset managers (25%) and endowment plans (24%).

Recent Preqin research has shown that 64% of investors looking to make new hedge fund investments in the next 12 months are interested in global macro opportunities. Investors are attracted to these opportunities as they add diversification and have the ability to generate high returns. There is evidence to suggest that all investor groups are likely to make additional global macro investments over the next 12 months. UK-based private sector pension Trafalgar House Pension Trust has recently hired a new global macro manager and plans to add another as part of its strategy to boost its exposure to global macro funds.

Many hedge fund managers see global macro strategies as the best bet for positive returns in 2012 and as a result these are likely to remain popular with institutional investors over the coming 12 months. Many investors have already announced plans to target new investments in this area and evidence suggests that global macro will be one of the most popular hedge fund strategies over the coming months.

Continue browsing industry reports, publications, conferences, blogs and more on Preqin Insights