Macro Strategies Emerge as Top Hedge Fund Pick Amid Trump-Era Uncertainties

Next year's hedge fund strategy spotlight is on macro trends, impacted by U.S. policy changes under President-elect Donald Trump. Investors predict greater market volatility, with macro strategies ranked highest among surveyed investors. Cryptocurrency investments underperform, while macro offers stability amid geopolitical uncertainties.

In the wake of political shifts heralded by U.S. President-elect Donald Trump, macro strategies are poised to dominate hedge fund investments. Investors are keenly watching how anticipated geopolitical and economic policy changes might alter market landscapes, ushering in a year of increased volatility.

According to a survey by Societe Generale, macro strategies have topped the list for hedge fund preferences among 239 investment firms. Despite the remarkable gains seen in cryptocurrency strategies last year, interest has waned, with many investors showing caution due to the inherent volatility and broad regulatory concerns in the crypto market.

Jordan Brooks of AQR highlights inflation and currency market dynamics as focal points, while Anthony Scaramucci suggests that significant institutional investment in digital assets is still evolving, emphasizing the need for careful regulatory navigation.

(With inputs from agencies.)