- GTAA has one of the longest track records of any investment style, spanning over 300 years
- The new generation of GTAA combines the classic principles of diversification and portfolio construction with modern instruments
- The changing economic and market environment is ideal for the multi-dimensional approach of GTAA
- Increasing economic volatility creates scope for ‘top-down’ or ‘macro’ alpha
- Higher market volatility has generated greater correlation volatility, resulting in dislocations between markets
- Low returns in recent years have created a need to seek alternative sources of alpha
- Increasing correlations within asset classes and major hedge fund strategies means top down is at least as important as bottom up analysis
- Increasing market volatility across asset classes increases differentiation of returns across strategies and significantly affects risk management
