Japan, China, commodities and emerging market currencies have been the main theme of global macro hedge funds for some time now. It comes as no surprise that these positions haven’t turned out so well for these funds. Some of the big winners of 2013 are already nursing sizeable losses this year.

Strategy Wise Asset flows in Q1 Global Macro
SOURCE: eVestment

Rubicon Global, which at this time last year was adorned with the highest return in the industry, is now one of the worst performers. Rubicon is down 13.7% for the year through April 18, according to returns from HSBC Hedge Weekly. The London based fund trades currencies, interest rates, bonds and forex and scored a +18% return in 2013. Assets of the fund are now at $890 million, at the end of 2010 it managed $1.6 billion.

Global macro managers, Citrone and Tudor stumble in 2014

Rob Citrone’s Discovery Global which also applies a global macro strategy is quite deep in losses. Both Discovery Global Opportunity and Discovery Global Macro Fund are down 13.6% and 11.5% till the mid of April. However the bulk of Citrone’s losses came in March, as both funds plunged 10%. Citrone has several technology focused investments which have returned badly this year. These funds scored +27% gain in 2013 which pushed its assets to $15 billion.

Another bigwig of the macro industry, Paul Tudor Jones is also having a bad run. Tudor’s $7 billion Tudor BVI Global Fund is down 3.8% through April 17, according to Hedge Weekly. Other funds, Tudor Discretionary Macro (AUM $1.7 billion) is down 6.4% in the same period whereas Tudor Tensor was down 5.8% in Q1.

Only global macro and managed futures suffered net outflows in Q1: eVestment

The March asset flow report from eVestment notes that the macro strategy as a whole suffered net outflows of $4.9 billion in 1Q2014, as another $2.9 billion moved out of these hedge funds in March. This makes macro the only hedge fund strategy that had aggregate losses after managed futures. The report further noted that the macro universe is now on a streak of outflows and has lost $13 billion over a 12-month period.

Fortress losing in both global macro funds

Fortress Investment Group’s macro funds have been doing equally bad. The $2.6 billion Fortress Asia Macro Fund is nursing a loss of -4.7% through April 18. The Fortress Macro Fund with $1.7 billion in assets was down 6% in the same period. The Asia fund was up 17% in 2013 whereas Fortress Macro gained 13%.

global macro funds

Andrew Law’s Caxton Global has suffered a detraction of 4% for the year till April 22, according to Hedge Weekly. Louis Bacon’s Moore Global Investment is down 4.8% through April 12, whereas Moore Macro Managers is up 0.5% in the same period. Graham Capital’s Absolute Return Fund and Global Investment Fund are down 2.9% and 4.7% YTD.

Macro

In these troubled times, a few have managed to hang on to decent returns. Pharo Macro is up 6% through April 11 , Omni Macro Fund is up 4.2% whereas BTG Pactual’s GEM Fund is up 4.5% in Q1.

Macro Funds