Editing Hedge fund (section)

===Global macro===
{{Main|Global macro}}
Hedge funds using a global macro investing strategy take large [[Position (finance)|positions]] in share, bond, or currency markets in anticipation of global [[Macroeconomics|macroeconomic events]] in order to generate a [[risk-adjusted return]].<ref name=Coggan/> Global macro fund managers use macroeconomic ("big picture") analysis based on global market events and trends to identify opportunities for investment that would profit from anticipated price movements. While global macro strategies have a large amount of flexibility (due to their ability to use leverage to take large positions in diverse investments in multiple markets), the timing of the implementation of the strategies is important in order to generate attractive, risk-adjusted returns.<ref name=Bartolo>{{cite web |url=http://www.cai.emory.edu/documents/HF_Strategies.pdf |title=Hedge Fund Strategies Guide |first=Michael |last=Bartolo |date=September 2008 |work=Goizueta Business School |publisher=Emory University |access-date=17 March 2011 |url-status=dead |archive-url=https://web.archive.org/web/20091128042720/http://cai.emory.edu/documents/HF_Strategies.pdf |archive-date=28 November 2009 |df=dmy-all }}</ref> Global macro is often categorized as a directional investment strategy.<ref name=Coggan/>

Global macro strategies can be divided into discretionary and systematic approaches. Discretionary trading is carried out by investment managers who identify and select investments, whereas [[systematic trading]] is based on [[mathematics|mathematical models]] and executed by [[software]] with limited human involvement beyond the programming and updating of the software. These strategies can also be divided into [[trend following|trend]] or counter-trend approaches depending on whether the fund attempts to profit from following [[market trend]] (long or short-term) or attempts to anticipate and profit from reversals in trends.<ref name=Ineichen192/>

Within global macro strategies, there are further sub-strategies including "systematic diversified", in which the fund trades in diversified markets, or sector specialists such as "systematic currency", in which the fund trades in [[foreign exchange market]]s or any other sector specialisation.<ref name="wavetheory_2010">{{cite book |title=Wave Theory for Alternative Investments |first=Stephen |last=Walker |year=2010 |publisher=McGraw-Hill Companies |isbn=978-0-07-174286-3}}</ref>{{rp|348}} Other sub-strategies include those employed by [[commodity trading advisor]]s (CTAs), where the fund trades in [[Futures contract|futures]] (or [[option (finance)|options]]) in [[commodity]] markets or in swaps.<ref>{{cite book |title=Investment strategies of hedge funds |first=Filippo |last=Stefanini |year=2006 |publisher=John Wiley & Sons |isbn= 978-0-470-02627-4 |page=223}}</ref> This is also known as a "managed future fund".<ref name=Coggan/> CTAs trade in commodities (such as gold) and financial instruments, including [[stock indices]]. They also take both long and short positions, allowing them to make profit in both market upswings and downswings.<ref>{{cite book |title=Evaluating hedge fund performance |last=Tran |first=Vinh Q. |year=2006 |publisher=John Wiley & Sons |isbn=978-0-471-68171-7 |page=54}}</ref> Most global macro managers tends to be a CTA from a regulatory perspective and the main divide is between systematic and discretionary strategies. A classification framework for CTA/Macro Strategies can be found in the reference.<ref>{{cite web|url=https://nilssonhedge.com/database-info/hedge-fund-classification/cta-classification/|title=CTA Classification|date=30 May 2019|access-date=28 July 2019|archive-date=28 July 2019|archive-url=https://web.archive.org/web/20190728145628/https://nilssonhedge.com/database-info/hedge-fund-classification/cta-classification/|url-status=live}}</ref>