Global macro is an investment strategy based on interpreting and predicting large-scale events related to national economies, history, and international relations. The strategy typically employs forecasts and analysis of interest rate trends, international trade and payments, political changes, government policies, inter-government relations, and other broad systemic factors.

Option A is incorrect. The distressed securities strategy is an event-driven strategy that focuses on companies in distress (financial trouble). Positions in bonds or stocks can be both long and short. Funds that employ this strategy impose more stringent lock-up and withdrawal terms.

Option B is incorrect. The long/short equity strategy involves maintaining long and short positions in equity and equity derivative securities. The fund manager buys the stocks they feel are undervalued while simultaneously selling those they feel are overvalued.

Option D is incorrect. Emerging markets hedge fund involves debt/equity investing in emerging markets. It’s a strategy that aims to identify emerging market shares that are overvalued or undervalued.