Identifying Global Macro Hedge Fund Strategy

In the realm of hedge fund strategies, global macro investing is a prominent approach that leverages various macroeconomic factors to generate returns. This strategy typically invests in a wide range of asset classes, including equities, bonds, currencies, and commodities, affected by economic, political, and social changes on a global scale.

Consider the following scenarios involving global macro strategies:

1. A hedge fund manager expects a significant rise in oil prices due to geopolitical tensions in an oil-producing region.

2. A hedge fund is betting against a currency after a country’s central bank announces a surprise rate cut.

3. A manager diversifying their portfolio by increasing positions in emerging market stocks due to anticipated economic growth.

Which of the scenarios above illustrates a global macro hedge fund strategy?