28/07/2010 Author: Zaki Abushal

Early-July drop-off makes things difficult for Macro

Macro managers continue to garner interest from investors in light of their diversification benefits, particularly as correlations are getting worryingly high.

On an absolute scale, the strategy isn’t blowing the competition out of the water, but is comfortably topping equities for the year. Conquest Capital was having one of the better years for a global macro manager before July. It still is – up 13.5% YTD, but a 7.14% drop in returns through the first two weeks of July has certainly taken that shine off.

Early July was difficult for the majority of global macro managers, Harmonic is down 2.4% through 9 July; Peak Partners down 1.8% for the same time; and Comac Global was off 2.37% for the same period.

Very few had anything to cheer about. Of the few who could, Episode has the most right to feel good about itself, up 1.4% by 9 July. However, it is still negative for the year.