Session recording

Pablo Calderini: Macro investing in a world of de-globalisation

The wave of globalisation has peaked. The US-China conflict, squabbles in the E.U. and the global pandemic’s impact in accelerating moves by multi-nationals to reset global supply chains has led to a disconnect between fundamentals and market volatility. In this fragile market environment, what is the role of systematic and discretionary for macro investors?

Speakers:
Pablo Calderini, president and chief investment officer, Graham Capital Management
Moderator: Alex Proimos, head of institutional content, Investment Magazine

Key Takeaways

  • Investors’ biggest concern in the current market environment is the lack of diversification. Gold and TIPS are two possible options to hedge equity portfolios, as traditional fixed income is unlikely to provide the defensive characteristics required.
  • The impact of loose monetary policy and unconventional fiscal policy has led to high asset valuations and resulted in many discretionary-only asset managers to underperform the broader market.
  • Systematic macro strategies are still a key component of macro fund strategies as they are able to capture the sentiment and bias via the momentum trade.

Poll results

What is your biggest portfolio concern in the current environment?

  • Liquidity needs
  • Long equity exposure
  • Fixed interest return expectation
  • Lack of diversification