Greenwich Roundtable Recommends Global Macro

Global macro and managed futures hedge fund strategies give managers the kind of investment leeway that can lead to volatility, but they are also an effective way for endowments to boost their returns, according to a report by the Greenwich Roundtable.

Global macro and managed futures hedge fund strategies give managers the kind of investment leeway that can lead to volatility, but they are also an effective way for endowments to boost their returns, according to a report by the Greenwich Roundtable. “It’s all about flexibility and the skill of the managers,” said Stephen McMenamin, executive director. “The cios of endowments should not be afraid to allow their managers to venture into esoteric investments if the skill level is there.” The roundtable is a Connecticut-based nonprofit alternative investment research and educational organization.

The report, Best Practices in Hedge Fund Investing: Due Diligence for Global Macro and Managed Futures Strategies, details the key points to look for when investing in the strategies, including the manager’s research methods, whether a veteran hedge fund manager has sustained his “edge” with returns, the negative or positive impact of style drift, fee structure and the composition of the team. “It’s not rocket science, but it’s hard work,” McMenamin said about investing in global macro. “There’s no getting around this point. It’s very labor intensive and research intensive.”