Big-picture thinking, a mainstay of the strategy, is not cutting it in choppy markets.
By David Turner
ANDY MARTIN
I N THE PAST 12 MONTHS, MANAGERS OF GLOBAL MACRO HEDGE FUNDS HAVE HAD TO DEAL WITH INTEREST RATE FLUCTUATIONS IN THE WORLD’S BIGGEST INTERNATIONAL CURRENCY UNION, A MULTISTATE SOVEREIGN DEBT CRISIS, AN EMERGENCY FUNDING INJECTION INTO THE BANKING SYSTEM, AND THE SPECTACULARLY POSITIVE EFFECT OF THAT FUNDING ON MARKETS — WHICH CAUGHT ALMOST EVERY SEASONED ECONOMIST BY SURPRISE.
