Understanding Global Macro Hedge Fund Strategies

In the context of hedge fund strategies, Global Macro hedge funds invest based on macroeconomic trends and events. A fund manager, Sarah, is considering a new strategy that focuses on interest rate differentials between countries, geopolitical risks, and currency fluctuations. She is particularly interested in exploiting the recent volatility in emerging markets alongside anticipated changes in U.S. Federal Reserve policies.

Sarah believes that her analysis of macroeconomic indicators will allow her to establish positions in various asset classes, such as equities, bonds, currencies, and commodities. To optimize her strategy, she will utilize both long and short positions and various derivatives to hedge risks and leverage her trades.

Given this investment thesis, which of the following strategies is Sarah most likely implementing?