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Alternative Market Briefing

A new global macro fund focuses on risk management to generate alpha

Tuesday, February 01, 2022

Opalesque New York for New Managers: 2021 was a solid year for global macro strategies. According to recent data from HFR, total capital invested in macro strategies rose over $33 billion in 2021 to end the year at $637.1 billion of assets under management. Macro funds also experienced net inflows for 2021, with investors allocating an estimated $3.1 billion of new capital during the year.

One beneficiary of the renewed interest in macro funds is an emerging global macro manager Arrow Partners. Arrow Partners, which launched in 2018, runs a liquid global macro strategy with an absolute return target of 7-9% per year. The strategy invests in developed equity market indices and relies on a robust risk management framework to generate alpha and remain largely market neutral. The strategy does not use leverage.

Arrow is led by an Istanbul based team - Onurhan Homris and Kemal Hepyaz. Homris was previously with a family office and Hepyaz traded soft commodities in Switzerland and Istanbul. The strategy at Arrow builds on expertise gleaned over their decades in finance.

The team focuses on creating investment themes that run over a 6-12 month timeline. From there, they combine macro research with other data including asset flows and sentiment to determine positioning and trading signals.

The team tells Opalesque New Managers that they rely on their risk management framework to help ......................

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