Gold, the US dollar, and bonds' 'trio': macro hedge funds achieve their best performance since 2008
The significant fluctuations in exchange rates, commodities, and bond prices have provided traders with fertile ground.
Dramatic market volatility—such as the dollar's decline triggered by Trump's trade war, the sell-off of long-term bonds, and the ongoing rise in gold—has provided the most favorable backdrop for the industry in years.
Most returns have come from trading in the US dollar, gold, and US Treasury markets.
'Tactical' or short-term trading strategies.
Macro funds profit both from shorting the dollar and from inflows into emerging market currencies and bonds.
The gold and precious metals market is thriving, the dollar is in a bear market, and there is also a divergence in policy actions among central banks such as the Bank of England and the Federal Reserve.
'Yield curve steepening' trades in gold and copper.
