A poor first half for most of the big players prompts talk of a new approach
Some investors are calling it the macro paradox. And it goes something like this: Just at a time when macro funds seemed poised for a renaissance of sorts, positioned to grab a bigger share of a deepening inflow of institutional assets because of perceived capacity constraints in other strategies, macro returns have widely failed to impress thanks to 2004's choppy markets.
As a group, macro funds on the whole lost about 0.3% in August leaving them up a meek 1.2% on the year - the worst showing of any hedge fund category, save managed futures which was down double digits over the same period, suffering from the same lack of sustained trends and sharp reversals in a broad array of markets.
Some of the rising stars of macro have fared badly this year....