There hasn’t been a more apt macro-environment since the rebound post-2008 great financial crisis, and macro hedge funds are capitalizing. Haidar Jupiter and Odey European both saw fund gains of 4.6% and 2.2% last month. Overall the industry has returned 5.3% in the first five months, which was shocking given the hedge fund industry was a net loser through that same time period. Macro has had challenges until recently where historically low-interest rates made it difficult to find any industry alpha but as rates, inflation, and other factors permeate the economy these hedge funds are finding their edge. The biggest successes have been in fixed income and commodities trading and reading the tea leaves on inflation perfectly.

Finsum: Active managers don’t always have an advantage but in this environment, they certainly seem to.