In a secular bear cycle, like we're in now, absolute returns are the way to go.
There remains a need for retirement products that address volatility and attempt to generate consistent, absolute returns.
For instance, absolute returns in the post-conflict period reached 95.6%, 101.3%, and 141.2% in Nigeria, Georgia, and Sri Lanka respectively.
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The simple version of this was that hedge funds would produce consistent absolute returns whatever the condition of financial markets.
Similarly, hedge funds that aim to deliver absolute returns on a consistent basis should be held accountable to their promised objective.
Hedge funds are attracting a growing proportion of institutional assets: they have been able to achieve above-average absolute returns in aggregate.
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The life insurance industry will expand its investment options available for their policyholders to select from, investment products that are more targeted at absolute returns.
This is because investors should be looking not at relative value, but for the same high absolute returns that they would require of similarly risky equities.
Investigate alternative investments, and particularly absolute returns funds.
Many in the financial industry champion these investment vehicles as a means to deliver absolute returns, regardless of which way the market is moving on any given day, while providing other market participants with much need liquidity.
They assumed that all hedge fund vehicles would provide absolute returns regardless of market conditions, that they were completely transparent if the fund manager said so, and they would provide liquidity if a redemption was met.
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He argues that hedge funds are similar to private equity funds in that the hedge fund manager (who holds himself out as providing absolute, uncorrelated returns) has control over when to take clients and to commit their capital.
Morningstar's "long-short" mutual-fund category includes market-neutral and absolute-return funds, which are designed to generate returns in any market environment, and arbitrage funds, which try to exploit market inefficiencies.
Ignoring for a second that this comparison completely ignores the vastly different risk profile of these two investments, it also ignores the fact that on an absolute basis, a 2% dividend yield is among the lowest in history and portends very low returns going forward.
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