An article in the Wall Street Journal today discusses how an old Hedge Fund strategy is back in favor. The Global Macro strategy is bets on economic trends in interest rates, global currencies and other instruments. Traders using the strategy have been winning big now that volatility has returned to the global market and interest rates are no longer rising in unison.
The article mentions plenty of hedge fund players (Clarium Capital Management, GLG Partners, Tudor Investment) and seems to focus most its attention on Alan Howard’s Brevan Howard Asset Management, LLP. Scoring a 25% gain in 2007, this London based fund hit it big again in January with a 10% gain. This macro-oriented fund has exploded in size becoming one of the largest hedge funds in the world according to the article.