Understanding Global Macro Hedge Fund Strategy

In the field of alternative investments, hedge funds represent a diverse range of strategies employed to achieve positive returns, regardless of market conditions. One of the prominent strategies used by hedge funds is the global macro strategy.

A global macro hedge fund typically bases its investments on the analysis of global economic trends and events. This may involve trading in various asset classes such as equities, fixed income, currencies, and commodities based on macroeconomic theories. Understanding how these funds operate can provide insights into their investment strategies.

Which of the following statements best describes the global macro strategy employed by hedge funds?