e. Global Macro Strategy Consider the following (hypothetical) macroeconomic scenario: Emerging market (EM) countries have been growing rapidly (overheating) and accumulating both historically large government budget deficits and trade deficits as expanding populations demand more public services and foreign goods. EM central banks have been intervening to support their currencies for some time, and electoral support for candidates promoting exorbitant business taxes and vast social welfare schemes in many EM countries has risen dramatically. These trends are expected to continue. Chu, portfolio manager at Global Macro Advisers (GMA), has been considering how to position his global macro hedge fund. After careful review of the central bank's financial reports of a leading EM country, it appears this central bank may run out of foreign exchange reserves soon and thus may be unable to continue its supportive currency intervention. 14. Discuss a global macro strategy Chu might implement to profit from these trends by using options. After the discussion on the various hedge fund strategies, Anbury then goes on to recommend a range of suitable investment vehicles for the proposed hedge fund strategies. She proposes the following investment vehicles for the investment committee's further review: a. Multi-strategy fund (MSF) b. Fund of funds (FOF) c. Separately managed account (SMA)