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Question:

A hedge fund uses derivative positions to take a long position in the Japanese yen and a short position in the euro. The classification of this hedge fund is most likely a(n):

A macro strategy fund.
Explaination

Macro strategy funds invest based on expected shifts of global economies, primarily in currency and interest rate derivatives. Quantitative directional funds take long and short positions in equities based on technical analysis. Event-driven funds seek to profit from investment strategies based on specific corporate events and one-time transactions.