Reuters – After years of being shunned, hedge funds which make bets on market trend using economic analysis are becoming more popular with investors and are likely to dominate the industry withinthree years, hedge fund sources say.
Investors are looking at the higher potential return this risky strategy — known as global macro — is likely to offer as stock, bond, currency and commodity market become more volatile due to economic uncertainties.
The most high-profile macro fund in recent history was run by George Soros who in 1992 bet against sterling staying within Europe’s Exchange Rate Mechanism, a forerunner of the euro.
