Hedge funds have experienced significant growth over the last few decades. Assets under management have grown from an estimated $100 billion in 1995 to more than $1.7 trillion as of 4th Quarter 2012. As a rapidly maturing investment alternative, hedge funds can offer investors increased opportunities to receive positive returns, enhance diversification, lower volatility and improve overall risk-adjusted returns.This paper discusses one particular hedge fund style known as “systematic global macro,” first reviewing this style’s risk and performance characteristics, and then discussing why it should continue to be a successful and essential component of a diversified portfolio that invests across a variety of hedge fund strategies.