Risk Management in Global Macro Funds

By Barry Schachter

This article was first published as a chapter in Global Macro: Theory and Practice, by Risk Books.

The purpose of this chapter is threefold. First, to provide an overview of some key principles of risk management as they apply to global macro investing. Second, to consider how risk controls are applied in the day-to-day management of global macro funds, while emphasising that the risk management function is much broader than just its quantitative elements. Third, to explore some open challenges