Global Markets Overview: June 2023

Positioning for higher economic and policy differentiation in 2023/24:

• In 2022 and year-to-date, most economies have tightened monetary policy aggressively in response to high inflation. The macro outlook for 2023/24 is highly uncertain, with higher variance across countries and within their capital markets.
• In these conditions, we believe the return from skilled active management is likely to be outsized – our past track record shows it can be found.
• Multi-strategy hedge funds can: (1) take advantage of this macro divergence; and (2) potentially add downside protection to portfolios during equity falls.