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Global macro: A "go-anywhere" strategy

Value of an initial $1,000 investment

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The total return of an investment is only one measure of performance. Performance should never be the sole consideration when making an investment decision. There is no guarantee that any investment product will achieve its objectives, generate profits or avoid losses. The referenced indices are shown for general market comparisons and are not meant to represent any particular Fund. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. US Stocks represented by S&P 500 Total Return Index; Global Macro represented by Barclay Global Macro Index. Bull markets: 01/97-08/00, 10/02-09/07, 03/09-present; tech wreck: 09/00-09/02; credit crisis: 10/07-02/09. Source: Altegris.

The ultimate "go-anywhere" strategy. The flexible and unrestrictive nature of global macro allows managers to take advantage of opportunities by seeking to anticipate price movements in any market anywhere in the world.

Global macro vs. traditional asset classes

The charts below show how global macro historically stacks up against traditional asset classes.

Calendar Year Performance: Global Macro vs US Stocks

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Global macro represented by Barclay Global Macro Index. See index descriptions below.

Performance Statistics:
Global Macro vs. US Stocks

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Global Macro represented by Barclay Global Macro Index. See index descriptions below.

Annualized 10-, 5-, 3- and 1-Year Returns

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Global macro represented by Barclay Global Macro Index. See index descriptions below.

Standard Deviation*

*Standard deviation is a statistical measure of how consistent returns are over time; a lower standard deviation indicates historically less volatility.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Global macro represented by Barclay Global Macro Index. See index descriptions below.

Global Macro Has Lower Correlation*

*Correlation is a statistical measure of how two securities move in relation to each other.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Global macro represented by Barclay Global Macro Index. See index descriptions below.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The referenced indices are shown for general market comparisons and are not meant to represent any particular Fund. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. US Stocks represented by S&P 500 Total Return Index; US Bonds represented by Barclays Capital US Aggregate Bond Index; International Stocks represented by MSCI EAFE Index; Commodities represented by S&P GSCI Total Return Index; Global Macro represented by Barclay Global Macro Index. Source: Altegris.

Global macro is a top-down approach to investing

Global macro is an opportunistic investment strategy that seeks to anticipate price movement. Fundamental/macroeconomic data as well as robust knowledge of the geopolitical landscape are central to the idea generation and trading process of these managers.

  • Anticipates price movement typically based on experienced manager discretion
  • Primarily utilizes fundamental/macroeconomic data
  • Flexible and unrestricted
  • Seeks opportunities regardless of borders or asset class

Taking advantage of a broad, global strategy

Global Macro strategies can invest both long and short, in multiple asset classes, in multiple markets around the world.

As one of the most flexible of all alternative strategies, global macro managers have a broad investment mandate, allowing them to tactically allocate capital across a wide range of liquid global financial markets. In examining the economic landscape, global macro managers try to spot anomalies, mispriced assets and major shifts in economic patterns, and invest accordingly. Of course, there is no guarantee that any investment will achieve its objectives, generate profits or avoid losses.

  • Multiple asset classes: Global macro managers have the ability to gain exposure to all four major asset classes: stocks, bonds, currencies, and commodities.
  • Long or short positions: The ability to go long or short gives managers the opportunity to potentially profit from both positive and negative developments across various market conditions.
  • Multiple trading disciplines: Global macro managers may employ a number of trading methodologies, utilizing various fundamental and economic inputs.

See the Glossary for term definitions.

Gain a deeper understanding of the global macro strategy

As part of the Altegris Academy, Altegris brings you a variety of resource materials that will help you better understand the potential advantages of the global macro strategy.