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Alternative Market Briefing

Global market volatility is 'perfect opportunity’ for global macro hedge funds

Monday, August 22, 2011

amb
Matthew Osborne
From Precy Dumlao, Opalesque Asia:

As the world is gripped with volatility across global markets triggered by concerns over the euro and this months debt ceiling woes in the U.S. and the eventual credit ratings downgrade by Standard & Poor’s from AAA to AA+, there is one hedge fund strategy wherein investors can find a safe haven. That is the global macro strategy, the most flexible of all alternative investments strategies and guaranteed to outperform especially during times of crisis, according to Altegris Funds’ Executive Vice President and Managing Director, Matthew Osborne.

La Jolla, California-based Altegris Investments, Inc. published an overview of the current markets, in which they commented: "Today's markets seem tailor-made for money managers investing based on big-picture, 'macro’ themes. As the most flexible of all alternative investment strategies, global macro managers employ long and short positions to capitalize on investment opportunities during periods of high market volatility, uncertainty and angst."

Over the past decade, often referred to as "the lost decade," global macro strategies have shown a historical track record of strong results for U.S. stock, highlighting its flexibility and diversification.

To put things into perspective, U.S. stocks returned 11% since 2000. During those periods, global macro strategies hedge funds gained 128......................

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