Is it low equity market exposure. Global Macro seems to have heterogeneous strategies. Just wanted to know “general” equity exposure.
Thank you
Good question, i have checked my notes and it does not say. One would think given they have high levels of leverage that it is due to low equity market exposure and given the strategies are contrarian i.e. they get big payoffs if the market is wrong that they dont have the same level of exposure.
That said, surely the payoff is if they they are right and the market moves in a different direction hence they would have high exposure to how the market actually moved vs what was predicted.
I am in two minds about it. I think overall though it is low, they make contrarian calls that dont happen often so over the long-term exposure must be low. What do you think?
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