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Opalesque Industry Update - The conflict in Ukraine, rise in inflation and commodities price surge have all combined to create an optimal environment for macro funds since the new year. Investors have responded accordingly with 60% of macro funds having posted positive flows in 2022 against 46% of other strategies. YTD, 65% of macro funds have positive returns, compared to 35% of other funds and FoHFs.
The HFM Macro Index is up 3% YTD as compared to the HFM Global Composite, which is down 0.1% in the same period. This also compares favorably with the US stocks, which are down 4.9% YTD. According to With Intelligence data, 2022 has seen inflows of $7.4bn to macro, a reversal of 2021, which saw $2.7bn of outflows even as the industry saw inflows of a net $30bn. Only multi-strategy has had greater inflows in the last four months and almost one-third of corporate pensions intend to increase their allocation to macro during H1 2022. HFM Macro Index is up 3% in 2022 and 5.7% over the past 12 months. Macro strategies saw inflows of $7.4bn this year against outflows of $2.7bn in 2021. Macro funds can expect further inflows and potential outperformance given current geopolitical, inflationary andcommodity scenarios. Net inflows totaled $15.1bn in 2021, half the hedge fund total. But that indicates outsized strategy interest given relative size (CTAs run $206bn, ~6% of hedge fund industry). Within managed futures, those focusing on less liquid and harder to trade so-called "alternative markets" have outperformed in the 8%-12% volatility band traditionally favored by investors.
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Industry Updates
Geopolitical events put macro funds in the spotlight as HFM Macro Index is up 3% in 2022; 5.7% over past 12 months
Wednesday, May 04, 2022
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