Understanding Liquid Alternatives

Global Macro Strategies

What Is Global Macro?

Global Macro is a top-down investment strategy that seeks to profit from large-scale economic and political trends across global markets. Managers take both long and short positions in equities, fixed income, currencies, and commodities based on macroeconomic insights, policy shifts, and geopolitical developments.

Unlike bottom-up stock selection, Global Macro focuses on big-picture themes—interest rate movements, inflation expectations, central bank policy, and cross-border capital flows—often employing a flexible, unconstrained approach to asset allocation.

 

How It Works

Strategies may be discretionary (based on fundamental analysis) or systematic (driven by quantitative models and data).

  • Asset Classes: Global equities, government bonds, currencies, commodities.
  • Instruments: Futures, options, swaps, and spot positions.
  • Views: Expressed through directional or relative value trades across countries and sectors.

 

Potential Benefits of Global Macro

  • Diversification: Returns driven by macro events rather than market beta.
  • Flexibility: Broad toolkit allows for swift positioning across asset classes.
  • Crisis Opportunity: Ability to thrive in volatile or dislocated markets.
  • Global Exposure: Captures trends across both developed and emerging markets.

 

Key Risks

  • Macroeconomic Forecasting: Success hinges on accurate interpretation of complex global events.
  • Leverage: Used to enhance exposure, which may amplify losses.
  • Geopolitical Shocks: Rapid changes have the ability to disrupt established positions.

 

Who Typically Uses Global Macro?

  • Investors seeking low correlation to traditional assets.
  • Allocators focused on event-driven alpha.
  • Portfolios looking for downside hedges during macro stress periods.

 

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DISCLOSURES

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus or summary prospectus containing this and other important information, please call 1-866-290-2688 or click here to view or download a prospectus online. Read the prospectus carefully before you invest.

The information contained on this website has been provided solely for information purposes and does not constitute an offer or solicitation of an offer, or any advice or recommendation, to purchase any securities or other financial instruments, and may not be construed as such. The information on this site is directed only at persons or entities in any jurisdiction or country where such access to information contained on this website and use of such information is not contrary to local law or regulation. Accordingly, all persons who access this website are required to inform themselves of and to comply with any such restrictions. Past performance is not a guarantee of future performance.

There can be no assurance that an investment strategy will be successful. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment which may differ materially and should not be relied upon as such.

View definitions of benchmarks and other terms used here.

The investment strategy and themes discussed herein may not be in the best interest of investors depending on their specific investment objectives and financial situation.

Diversification does not eliminate the risk of experiencing investment losses. There is a risk of substantial loss associated with trading commodities, futures, options, derivatives and other financial instruments. Before trading, investors should carefully consider their financial position and risk tolerance to determine if the proposed trading style is appropriate. Investors should realize that when trading futures, commodities, options, derivatives and other financial instruments one could lose the full balance of their account. It is also possible to lose more than the initial deposit when trading derivatives or using leverage. All funds committed to such a trading strategy should be purely risk capital.

© AQR Funds are distributed by ALPS Distributors, Inc. AQR Capital Management, LLC is the Investment Manager of the Funds and a federally registered investment adviser. ALPS Distributors is not affiliated with AQR Capital Management.