Macro strategies in Hegde fund

Abstract

Macro strategies in Hedge Funds are one of the many strategies used by hedge funds. While Hedge Funds as a concept were first formed in 1949, macro strategies probably came much later in the 1980s. Before digging deeper into evolution of macro strategies in hedge funds, we would like to give a brief overview on hedge funds. Alfred Winslow Jones formed the first hedge fund in 1949. It used to use a long-short strategy and leverage to pick stocks. By mid-1960s as stock market boomed, hedge funds started underperforming the market. And with time they decreased in popularity. Until, in 1980s when a revival of hedge funds occurred. Contributing to this revival was publicity surrounding Julian Robertson’s Tiger Fund. It was a macro fund which as per a May 1986 article had generated a 43% average annual return since its inception in 1980.