A multi-strategy hedge fund, accessible to accredited investors through an offering memorandum, uses multiple uncorrelated strategies to generate returns. Which of the following would be considered a macro hedge fund strategy?

Question: A multi-strategy hedge fund, accessible to accredited investors through an offering memorandum, uses multiple uncorrelated strategies to generate returns. Which of the following would be considered a macro hedge fund strategy?

Answer options:

• Exploiting mispricings between a company's stock and its options.
• Taking long and short positions in equities based on fundamental analysis. ✅ Betting on broad economic trends by taking directional positions in currencies and interest rates.
• Buying debt of distressed companies with the expectation of a restructuring.

Correct answer: Betting on broad economic trends by taking directional positions in currencies and interest rates.

Explanation: Global Macro strategies focus on identifying and profiting from large-scale economic and geopolitical trends through broad directional bets across various asset classes like currencies, commodities, and fixed income. This contrasts with event-driven or relative value strategies.