Investor appetite for absolute returns still strong despite weak run for the sector

Asset flows in the Absolute Return sector hold firm despite period of lacklustre performance and high correlation between asset classes

Hedge funds have seen returns dry up over the past three years, raising questions about their ability to justify high fees. The latest statistics from the HFRI hedge fund index showed the index made a gain of just 2.99% over the past 36 months, and similar patterns have been seen in the Absolute Return sector in the shorter term. The sector is now among the worst-performing IMA peer groups over 12 months after returning just 4.5%. Launches continue Yet the sector is still seeing product launches and attracting new assets regardless, with only 21 out of 59 funds in the sector having a t...