Global Macro as a Hedge Fund Alternative

May 19, 2011

Brett Arends of MarketWatch reports on hedge funds from the SALT conference in this video. He doesn’t like hedge fund fees, often 2% annually along with 20% of the profits, and points out that their long-term performance hasn’t really been spectacular. There’s nothing wrong with the hedge fund concept, however, and he concedes that some of the new hedge-fund-like mutual funds may perform well.

Our Global Macro strategy, in both separate account and mutual fund form, is not dissimilar to the strategies used by some Global Macro hedge funds. It can rotate among domestic equities, international equities, fixed income, commodities, currencies, real estate, and inverse funds. Below, it is compared to the Index IQ Global Macro hedge fund replication index. Depending on what your client is looking for in terms of uncorrelated assets to build their portfolio, our Global Macro strategy may be worth a look.

Click to enlarge. Source: Yahoo! Finance

To obtain a fact sheet and prospectus for the Arrow DWA Tactical Fund (DWTFX), click here.

Click here for disclosures. Past performance is no guarantee of future results.


Fund Flows

May 19, 2011

The Investment Company Institute is the national association of U.S. investment companies, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and unit investment trusts (UITs). Members of ICI manage total assets of $11.82 trillion and serve nearly 90 million shareholders. Flow estimates are derived from data collected covering more than 95 percent of industry assets and are adjusted to represent industry totals.

Taxable bond funds continued to attract the most new money last week and have attracted over twice as much money as the next most popular group. Domestic equity funds continue to bleed assets.