Dow Jones -Some hedge funds are kicking off the new year with glimmers of hope. After a gut-wrenching 2011, these funds are betting signs of improvement in financial markets will give traditional “macro” trades based on economic growth and inflation a better chance of paying off.
Policy makers’ squabbles over the euro and the U.S.’s debt burden made such trading difficult last year, saddling hedge funds with losses. But this year, these political forces could lose some of their shock value for markets, even if the underlying problems in Europe and the U.S. remain unresolved.
