Hedge Funds

Episode rides ‘risk on/risk off’ macro wave


After bouncing back from a poor 2008, long-running M&G manager Dave Fishwick believes his unusual strategy is well placed to exploit the febrile market environment that could persist for some time yet

 Dave Fishwick

The performance of Episode, the long-running $2.5 billion global macro strategy run by Dave Fishwick and Eric Lonergan at UK insurer Prudential’s M&G asset management subsidiary, illustrates just how challenging an environment 2010 turned out to present for many macro managers.

Episode ended the year up 4.83% after a topsy-turvy and very volatile year that saw huge dispersion in returns from macro funds amid a persistently changing ‘risk on/risk off’ sentiment among investors and market participants.

The Episode strategy is an unusual one, aiming to exploit the ‘emotional’ aspects of markets and asset