Nine things you need to know about working for systematic macro hedge funds

1. Systematic macro funds use a simple three stage investment process which can be used to trade globally 24 hours a day

1. Collect huge datasets from a diverse range of sources;
2. Analyse the date to find persistent patterns; and finally
3. Encode trading rules into a computer-based program to profit from the identified patterns.

2. Systematic macro hedge funds aren’t limited to trading one particular product or market

3. Systematic macro hedge funds are mostly about identifying and following trends

4. They also look for ‘counter-trends’…

5. And for ‘relative value trends,’ and for ‘seasonal trends’

6. Systematic hedge funds generate returns superior to funds focused on equities or bonds
7. But they’ve struggled in periods where there’s no real trend to follow…

8. Returns to systematic macro funds are not that similar to equities and bonds over the long term, making systematic macro a valuable element of a diversified portfolio…

9. Working for a systematic macro fund should appeal to your if you’re a hard edged empiricist rather than a fluffy theoretician

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