Characteristics of Global Macro Hedge Fund Strategies

Consider a hedge fund employing a global macro strategy that uses a top-down approach to capitalize on macroeconomic trends affecting various asset classes, including currencies, commodities, and interest rates. The fund manager analyzes geopolitical events, economic data, and central bank policies to formulate investment positions.

Recently, the manager has identified an economic slowdown in a major developed economy, prompting expectations of lower interest rates. In response, the manager decides to short a specific currency tied to this economy, anticipating a devaluation.

Against this context, which of the following statements best describes a characteristic of global macro hedge fund strategies?