There are many different hedge funds around the world that generate alpha using a number of different strategies, ranging from arbitrage to short selling. Over the past several years, global macroeconomic (“global macro”) investing has grown increasingly popular due to the turbulence affecting many parts of the world. Many of these funds must regularly report their largest holdings to the U.S. SEC.
In this article, we’ll take a look at the top three global macro hedge funds and how international investors can follow their trades by reading SEC filings.
Bridgewater Associates is a $122 billion global macro hedge fund that invests based on economic trends, such as inflation, exchange rates, and U.S. gross domestic product readings. As early pioneers of currency overlay strategies, absolute return products, and risk parity concepts, the hedge fund was among the fastest growing asset managers in the world between 2000 and 2005.
In 2010, the company was ranked #1 in Institutional Investors’ Worlds Top 100 Hedge Funds list and received the Macro Focused Hedge Fund Firm of the Year award among other things. AR&A also ranks the company #1 in its Hedge Fund Report Card and Billion Dollar Club categories given its consistent outperformance of competitors and innovative strategies that it brings to the market.
International investors can follow the company’s quarterly 13F-HR SEC filings on the SEC’s EDGAR website: http://edgar.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001350694&owner=exclude&count=40.
Caxton Associates is a global macro hedge fund that makes investments based on its analysis of worldwide economic trends. According to a Financial Times interview with Andrew Law in 2013, the hedge fund is largely focused on three core principles, including listening to the markets, paying attention to politics, and effectively managing risk in order to improve long-term returns.
While the hedge fund experienced some redemption issues early in its history through 2008, it has made more than $13 billion for its clients – or 14% annually – with half the volatility of the S&P 500, which makes it a leader among global macro hedge funds and a solid performer among all hedge funds in general. Notably, the company has never truly restricted redemptions either – even in 2008.
International investors can follow the company’s quarterly 13F-HR SEC filings on the SEC’s EDGAR website: http://edgar.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000872573&owner=exclude&count=40.
Soros Fund Management is a hedge fund that was reclassified as a “family office”, which is run by the legendary billionaire George Soros. In addition to breaking the Bank of England back in 1992, netting more than a billion pounds in a single day, he has averaged a 20% annual rate of return over the subsequent four decades, making the fund one of the best performing in the industry.
In general, the fund is focused on investing in public equity and fixed income markets worldwide, as well as foreign exchange, currency, commodities, private equity, and venture capital funds. The company has large investments in transportation, energy, retail, financial, and other industries, which makes the investments worth following moving into the future.
International investors can follow the company’s quarterly 13F-HR and 13G SEC filings on the SEC’s EDGAR website: http://edgar.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001029160&owner=exclude&count=40
International investors can glean a lot of insights by following the investments made by leading global macro hedge funds. In addition to these three funds, investors can take a look at the SEC filings associated with many other funds in order to create lists of “stocks to watch” as an alternative to investing in broader market exchange-traded funds (“ETFs”) that may not offer quite as much alpha.
In this article, we’ll take a look at the top three global macro hedge funds and how international investors can follow their trades by reading SEC filings.
Bridgewater Associates
Bridgewater Associates is a $122 billion global macro hedge fund that invests based on economic trends, such as inflation, exchange rates, and U.S. gross domestic product readings. As early pioneers of currency overlay strategies, absolute return products, and risk parity concepts, the hedge fund was among the fastest growing asset managers in the world between 2000 and 2005.
In 2010, the company was ranked #1 in Institutional Investors’ Worlds Top 100 Hedge Funds list and received the Macro Focused Hedge Fund Firm of the Year award among other things. AR&A also ranks the company #1 in its Hedge Fund Report Card and Billion Dollar Club categories given its consistent outperformance of competitors and innovative strategies that it brings to the market.
International investors can follow the company’s quarterly 13F-HR SEC filings on the SEC’s EDGAR website: http://edgar.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001350694&owner=exclude&count=40.
Caxton Associates
Caxton Associates is a global macro hedge fund that makes investments based on its analysis of worldwide economic trends. According to a Financial Times interview with Andrew Law in 2013, the hedge fund is largely focused on three core principles, including listening to the markets, paying attention to politics, and effectively managing risk in order to improve long-term returns.
While the hedge fund experienced some redemption issues early in its history through 2008, it has made more than $13 billion for its clients – or 14% annually – with half the volatility of the S&P 500, which makes it a leader among global macro hedge funds and a solid performer among all hedge funds in general. Notably, the company has never truly restricted redemptions either – even in 2008.
International investors can follow the company’s quarterly 13F-HR SEC filings on the SEC’s EDGAR website: http://edgar.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000872573&owner=exclude&count=40.
Soros Fund Management
Soros Fund Management is a hedge fund that was reclassified as a “family office”, which is run by the legendary billionaire George Soros. In addition to breaking the Bank of England back in 1992, netting more than a billion pounds in a single day, he has averaged a 20% annual rate of return over the subsequent four decades, making the fund one of the best performing in the industry.
In general, the fund is focused on investing in public equity and fixed income markets worldwide, as well as foreign exchange, currency, commodities, private equity, and venture capital funds. The company has large investments in transportation, energy, retail, financial, and other industries, which makes the investments worth following moving into the future.
International investors can follow the company’s quarterly 13F-HR and 13G SEC filings on the SEC’s EDGAR website: http://edgar.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001029160&owner=exclude&count=40
Key Takeaway
International investors can glean a lot of insights by following the investments made by leading global macro hedge funds. In addition to these three funds, investors can take a look at the SEC filings associated with many other funds in order to create lists of “stocks to watch” as an alternative to investing in broader market exchange-traded funds (“ETFs”) that may not offer quite as much alpha.