Global macro managers have had to work hard for their money in recent months. With clear macroeconomic trends tough to spot, even the sector’s top funds have seen performance falter.
February’s emerging-markets sell-off, combined with speculation that the Japanese central bank might raise interest rates, spurred fears among hedge fund managers that the carry trade -- the practice of borrowing at low interest rates in Japan and reinvesting the money elsewhere for a higher yield -- could soon come to an end.
