- Advertisement -
- Advertisement -

Macro Hedge Funds Surge in March as Inflation, Geopolitical Risk Rise

- Advertisement -

CHICAGO, (April 7, 2022) – Macro hedge funds surged to lead industry-wide gains in March, completing a record 1Q by again posting sharp returns as financial market volatility was exacerbated by skyrocketing inflation, rising interest rates and expectations for continued increases, and escalation of the Russian military conflict in Ukraine.

The investable HFRI 500 Macro Index surged +6.25 percent in March, extending its 1Q 2022 return to +10.0 percent, with strong contributions from Commodity, Fundamental Discretionary, and Quantitative, trend-following strategies. The investable HFRI 500 Fund Weighted Composite Index advanced +2.4 percent for the month, extending its 1Q22 return to +0.85 percent, topping the decline of the Nasdaq by nearly 1000 basis points.

Macro strategies delivered strong outperformance in March and for 1Q, posting negatively-correlated gains as equities declined in January and February, while producing positively-correlated returns in March as equities recovered. The investable HFRI 500 Macro Index surged +6.1 percent in March, the highest monthly return since inception, bringing 1Q performance to +10.0 percent, which is also a record quarter. The HFRI Macro (Total) Index vaulted +5.5 percent for the month. Macro sub-strategy gains were led by the investable HFRI 500 Macro: Commodity Index, which surged +18.1 percent in March, also a record monthly gain, as commodities spiked on inflation fears and supply disruptions tied to the Russian invasion of Ukraine; the Index produced a quarterly record return of +35.7 percent. Quantitative, trend-following Macro sub-strategies also led as the HFRI 500 Macro: Systematic Diversified Index spiked +6.7 percent for the month, also a record monthly gain, bringing the 1Q22 return to +11.3 percent.

“Global Macro hedge funds, led by fundamental, discretionary commodity, and quantitative, trend- following Macro, posted record gains in March to conclude a historic quarter as financial market volatility spiked driven by generational inflation, rising short term interest rates leading to an inverted yield curve, and acceleration of the military conflict following the Russian invasion of Ukraine. The combination of these two powerful market dynamics of inflation/interest rates and historic geopolitical risk has contributed to massive dislocations across commodity, equity, and fixed income markets and unprecedented macro and geopolitical uncertainty, with managers navigating tremendous and fluid volatility,” stated Kenneth J. Heinz, President of HFR. “As with the prior months, many managers, especially Global Macro managers, have clearly demonstrated their tactical flexibility to respond to these rapidly shifting market cycles and conditions, and these strategies are likely to attract institutional capital in coming quarters by not only leading industry performance, but generating defensive capital preservation and significant outperformance of equity markets through this unprecedented geopolitical and macroeconomic uncertainty.”

Pic: (c) shutterstock.com — isak55

close

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Guest Contributor
Guest Contributor
This article was written by a third party as guest contribution. The content represents the views of the author(s). It was submitted and edited under HedgeNordic´s guidelines, but is not a product of HedgeNordic´s regular editorial team.”

Latest

Most Popular This Week

Voices

Request for Proposal

- Advertisement -

Latest Articles

Alcur’s Third Win in a Row

Stockholm (HedgeNordic) – Alcur Fonder’s first hedge fund, Alcur, has been named “Hedge Fund of the Year” by Swedish business magazine Privata Affärer for...

Lynx is Fund Company of the Year, Says Privata Affärer

Stockholm (HedgeNordic) – Lynx Asset Management has been named “Fund Company of the Year” by Swedish business magazine Privata Affärer. The distinction comes after...

RFP: Absolute Return Multi-Strategy/Fund of Funds

(Global Fund Search) - A Danish Institutional Investor is searching for an absolute return strategy for an allocation of EUR 40 million. The mandate...

Brummer Multi-Strategy Navigates 2022’s “Perfect” Storm

Stockholm (HedgeNordic) – 2022 experienced a “perfect” inflation storm due to an unprecedented amount of monetary and fiscal policy stimulus during the pandemic, war,...

Dream Comes True for Grönblom

Stockholm (HedgeNordic) – Ernst Grönblom had been running his high-conviction strategy of cherry-picking the stock market’s undervalued future winners under the umbrella of United...

Boarding the Broader Alternatives Ship

Stockholm (HedgeNordic) – Tore Davidsen, portfolio manager of SEB Eureka Fixed Income Relative Value since its launch in 2018, will join BankInvest as Senior...