Interest in macro strategies has increased notably over the past six to 12 months, as investors look for strategies that can address the challenges outlined above, including the need for return enhancement, diversification, and liquidity. Because there is no “one size fits all” macro strategy, investors conducting a manager search should clearly define the investment attributes that matter most (e.g., return enhancement vs. downside mitigation). In addition, we think it is critical to fully understand a macro manager’s specific offering, including team structure (e.g., single portfolio manager vs. multi-manager), investment philosophy and process (what’s the “edge”?), resources, capacity limits, and terms (e.g., fees, expenses, and liquidity).
Renaissance (the French word for “rebirth”) periods have historically rewarded those able to identify economic and societal changes that will dramatically influence the future state of the world. We believe we are transitioning into one such period, with meaningful implications for investors. If we are right, we think macro strategies may be well positioned to capitalize on what could be an interesting and distinctive time for the global economy and financial markets.