“It’s not deterministic, but I like being macro aware.” -Merger Arb PM, San Francisco
Keith and I landed late last night on what now feels like a redeye from two days of client and prospective client meetings in San Francisco. The above quote was from a PM at a large hedge fund who’s been around long enough to respect cycles.
...Indeed, the only thing Keith and I want to accomplish when we show up to your office slightly fatter with slightly more grey hair than the last time we met is to help make you “macro aware”. With The Machine forcing investors to adjust their exposures faster and more fervently than ever before, the amount of alpha waiting around to be captured by investors from just sequencing the growth, inflation, and [corporate] profits cycles has never been greater.