A hedge fund that prefers to profit from expected macroeconomics, such as changes in national unemployment, national income, GDP, inflation/stagnation or price levels.
By including a vast array of financial instruments such as stocks, options, futures and forex, a macro fund casts a wider net across the markets. Such a fund will closely observe the general business cycle, instead of the individual cycle. Companies that naturally cyclical are more attuned to a macro environment, whereas the consumer staples businesses are less likely attuned.
In addition, the more heavily reliant a company’s performance is upon the health of the overall economy, the more the economy will influence the performance.