Hong Kong-based investment advisory firm Meridian Capital Management has added a new Global Macro Hedge Fund’ to its existing hedge fund offering. The launch comes as the firm prepares to celebrates its 10th anniversary.
“With the completion of 10 years we have decided to don another hat, which we believe further strengthens our promise to bring more ideas for your money,” says Chief Information Officer Daniel Waring.
Steven Woodall-Head of Global Portfolio Construction and Risk at Meridian Capital Management says: “Investment today is not restricted to one’s country and we have a significant portion of persons who are invested globally. Several macro economic factors such as governmental policies, political changes in leadership, inter-government relations, currency fluctuations and general fund flows affect these global investors. In order to minimise the risk associated with such factors a Global Macro Hedge Fund is the real need of the hour.”
Senior Market Analyst Kevin Chung points out that the primary concern and decision-making strategy of global macro fund managers is ‘risk’ because one has to be proactive in a speculative world. Kenneth Freed the firm’s Futures Trading Specialist says that their global macro fund managers would employ derivatives, such as futures and options in their strategies, to balance the risk exposure. The focus would be on avoiding liquidity crisis. This type of fund is the least restricted of all the major hedge fund styles and is often referred to as a ‘goes anywhere’ strategy because of the ability to express either long or short views, across any asset class, and in any region.
The strategy for the success of this fund is to produce outsized positive returns with the help of leveraged plays on price movements in currency, equity, interest rate, and commodity markets. Global Macro hedge Funds have produced positive results where several other strategies have failed or faced challenges. While traditional hedge fund strategies concentrate on individual security opportunities, global macro hedge fund strategies would focus on major market trends. The merit of such a fund is that it has the potential to create positive investment returns independent of the direction of capital markets, the momentum of the macro economy or the shifts in the commodities cycle.
