Stock and bond markets remain volatile due to ongoing and new economic risks. This uncertainty has made investors seek alternatives to traditional portfolios.
One strategy that stood out in the first quarter of 2025 is the global macro hedge fund approach, which offers both diversification and strong returns.
Global macro hedge funds focus on economic trends. Managers analyze factors like inflation, interest rates, economic growth, and geopolitics to guide their investments.
They invest across various assets, including stocks, bonds, commodities, and currencies. By taking both long and short positions, these funds can profit when markets rise or fall.
This approach has low correlation with the typical 60/40 stock-bond portfolio and was the second-best performing hedge fund strategy in early 2025.
Investors can access global macro strategies through ETFs, which often come with lower fees than traditional hedge funds. One example is the Unlimited HFGM Global Macro ETF (HFGM).
This fund aims to exploit pricing inefficiencies in global markets by holding long and short positions across equities, fixed income, currencies, credit, and exchange rates.
HFGM uses a data-driven method to track the positions of leading global macro hedge fund managers. It replicates these positions using futures contracts and a mix of ETFs.
This approach offers returns similar to the global macro hedge fund sector but with higher volatility, which could lead to better performance.
The HFGM ETF is a focused part of the broader Unlimited HFND Multi-Strategy Return Tracker ETF, which covers multiple hedge fund strategies. Bob Elliott, CEO and CIO of Unlimited, manages HFGM.
He has over 20 years of experience in systematic global macro investing. The fund charges a management fee of 1.00%, making it an attractive option for investors seeking diversified exposure to global macro strategies.
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