Macro hedge funds are among the most commonly utilized hedge fund strategies in the Asia-Pacific region, following only long/short equity hedge funds. Preqin’s Hedge Fund Investor Profiles shows that 31% of hedge fund investors in the region are currently invested in macro hedge funds. Even more promisingly for the macro sector, of those investors actively seeking to make new fund investments over the next 12 months, 55% include macro funds as part of this search.
Excluding fund of hedge funds managers, superannuation funds are the most prominent hedge fund investors in the region, making up nearly 26% of investors in macro funds within the region. This is followed by asset managers, with 21% of Asia-Pacific investors in macro funds. Public and private sector pension funds follow on from this, with a combined 14% of the pool of macro investors in Asia-Pacific. Geographically, Australian investors are the most prominent investors in the strategy, with 44% of these investors investing in the strategy or expressing interest in doing so. This is followed by Japan (27%) and Singapore (11%).
Macro hedge fund managers with a global investment scope are most commonly sought by these investors, with over 94% of Asia-Pacific institutions expressing interest in funds with a global mandate. Nearly 43% of these investors are interested in North America-focused funds, while 34% of the investor pool expressed interest in either Asia or Australasia-focused macro funds.
Macro hedge funds provide flexible exposure for investors to macroeconomic developments around the world, meaning that global macro hedge fund managers have a unique opportunity to take advantage of the continued upheaval caused by the global financial crisis. With opportunities continuing to arise for fund managers operating this strategy due to recent events such as the current crisis in Cyprus and the economic policies of Japan’s new Prime Minister, Shinzo Abe, macro hedge funds will continue to prove attractive to investors from the Asia-Pacific region, and macro fund managers can be successful in marketing within Asia-Pacific.