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CFA Level 2
Alternative Investments

Global Macro Hedge Fund Strategy Analysis

Very Hard Hedge Fund Strategies Global Macro

Global macro hedge funds are investment strategies that attempt to capitalize on macroeconomic trends and shifts in various global markets through long and short positions in various asset classes. The effectiveness of these strategies often relies on the ability to predict geopolitical events, economic indicators, and fluctuations in currency or commodity prices.

Coral Capital, a global macro hedge fund, is currently analyzing the impacts of a potential interest rate hike by the Federal Reserve, geopolitical instability in Eastern Europe, and shifting trends in global commodity prices. Given these factors, consider the following scenarios:

Which of the following strategies is most likely to align with Coral Capital's objectives in light of the aforementioned economic and geopolitical developments?

Hint

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