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Notes -
I don’t think Wall-Street hirers those guys anymore. Maybe a Bill Gross or Gundlach but to be honest those guys spend probably more time think about small market structure edge to squeeze an extra 20 bps versus absolutely hammering the economic outlook right and getting 10 year up or down right.
The big macro funds are going to be thinking about a lot of other things too than getting the macro call right. The guys in those shops getting the economy right just isn’t that important when your levered and have risks limits on everything. Pays much better just figuring out a sentiment shift or a trigger for a price (like at etf entrance or some quant allocation that will happen).
Any macro interview is going to start with returns and Sharpe ratio stuff not whether your calls are right. Getting calls right is just too volatile.
One example I would use is when oil when -50 (and an extreme example) it only traded negative for like 90 minutes and the entire next day was positive entire day. Even if you knew the price next day and traded that you wouldn’t make money because is in between for those 90 minutes a nice security guard came to your desks and escorted you out. What happened is some Chinese banks were long some derivatives linked to that days oil close and blasted it negative (probably illegally) causing billions of losses on those banks. But if you had mapped out all the fundamentals and macro and absolutely nailed the value of a barrel of oil you would in fact not be rich.
The only place I think kind of sometimes takes a big macro swing (usually on bearish side) is Bridgewater but they overall haven’t had great performance but somehow are a marketing powerhouse.
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