Macro Hedge Funds to Profit as Markets Brush Off Shocks

At Caxton Associates LLC, an $11 billion hedge fund, Chief Investment Officer Andrew Law is betting on rising prices for commodities including oil. Fulcrum Asset Management LLP’s Gavyn Davies likes Japanese stocks.

Managers of macro hedge funds such as Law and Davies wager on broad economic trends, and they say 2011 is shaping up to be a promising year as big themes take hold, notably a pickup in global growth and rising interest rates outside of the U.S. Market volatility that stymied macro funds over the past two years is subsiding, as are concerns caused by Japan’s 9.0 magnitude earthquake and unrest in the Middle East.