Summary

The Macro Hedge portfolio is designed to capture periods of fear and uncertainty in global markets by selectively utilizing relevant signals from our core GAA product. Not all market stress periods behave the same or manifest themselves in the same manner. This portfolio is meant to capture extreme periods of Fear that can be driven by general risk aversion or extreme periods of inflation or disinflation. It is also meant to produce positive returns with global unrest or fiat currency concerns. The portfolio will only short Global Equities and Global Commodities, aside from Gold; the portfolio can only be long Gold. While US Treasury Bonds have historically performed well in these aforementioned stress periods, this Macro Hedge portfolio does not invest long in fixed income due to the expectation that rising interest rates could in fact be a primary driver of future market dislocations.