eVestment|HFN Strategy Focus Report: Macro

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Complete report

The eVestment|HFN active and inactive databases have performance
and asset information for 468 unique funds that invest across a variety
of markets with a macro approach. The macro fund universe is one of
the more diverse in approaches to trading. There are very large funds
investing across the spectrum of markets to funds focusing on specific
regional markets and securities. The common thread is that macro, or
large scale trends are the primary influence in the trade decision making
process, whether those be employed in a full systematic or discretionary
approach or a combination of both.

 Macro funds generally outperformed the aggregate hedge fund
industry in 2011 (-3.7% vs. -5.0%) and on an asset weighted
basis, performed significantly better (+1.2% vs. -1.6%).

 Macro fund assets under management ended 2011 at an
estimated $200.2 billion, an increase of 2.0% during the year.
Investor flows were positive, but below the average rate of
growth for the industry in 2011.

 The equity market rebound to begin 2012 resulted in macro
funds lagging the industry in January. Smaller funds performed
better than large, but were still behind the aggregate industry.

The global environment for economic, political and financial markets in
2011 was ripe with large scale influences that could have greatly
benefited those macro funds with a firm grasp of how events would
influence certain assets and in turn how shifts in different asset prices
could impact others. The remainder of the report compares performance
and flows across macro strategies and the various sub-classifications
eVestment|HFN is able to track to get a better idea of who was able to
perform well in 2011 and what that means for 2012.