Global Macro Funds Plummet on Tapering Fears

As most of the famous names in the global macro strategy have made big gains through the year, similar luck has not come in the way of smaller macro hedge funds. For example, Omni Macro Fund (AUM $416 million), down 3.7 percent for the year through May, has returned on the positive end only once in February, and the fund lost 2.63 percent last month.

In May the fund lost on short bets in German DAX index and shorts in U.S. equities also underperfomed. The...