Macro managers finally gain on 'perfect storm'

The hedge fund Japan trade

Hedge funds that bet on broad macroeconomic trends have bled money all year waiting for their investment ideas to hit. Some of their biggest wagers—from rising interest rates to a stronger U.S. dollar to more volatile markets—finally paid off in September, helping reverse an otherwise miserable 2014.

Some of the best-known money managers in the industry, including Discovery Capital Management, Brevan Howard Asset Management, Tudor Investment Corp. and Caxton Associates, produced strong returns in September. As a whole, so-called macro funds had their best single month in four years, rising 1.46 percent on average, according to the Absolute Return Macro Index.

"September was the perfect storm for macro managers. All the big themes that they took pain on in the first half finally hit," said Chris Solarz, head of macro manager research at investment consulting firm Cliffwater.