Soul searching: Targeted absolute return must look deep into itself for any chance of revival

Deep Dive into absolute return

It has been a tough few years for the absolute return sector. Many of the high-profile names have suffered from lacklustre performance and substantial redemptions.

The mystique that surrounded celebrated funds and fêted investment managers has been replaced by investor fatigue, revealed mediocrity and the occasional scandal. The emperor, it turned out, was naked.  If the sector cannot address its shortcomings, it will slip unlamented into history. However in every crisis, there is an opportunity and it is possible that hitting rock bottom is a pre-requisite for a healthy recovery. The sector's way back from the wilderness requires some critical self-analysis. What was it that made these funds so successful and what was it that went so wrong?  ...