Global Macroeconomic Analysis
Some hedge funds use the overall macroeconomic situation in the world and take advantage of changes that occur in it. Hedge funds choose to invest in different securities like bonds, stocks, or even currencies, focusing not only on one market, but rather globally diversifying their portfolios.
In this way, hedge funds profit from a larger diversity, and can diminish risks that can occur from a downfall in a particular market.
Ray Dalio of Bridgewater Associates (pictured left), manages the world’s largest hedge fund with an estimated $122 billion in assets under management. Dalio is a self-proclaimed macro investor, and is infamous for using a team of analysts to compile constant, real-world macroeconomic analysis.