Don't be short sighted

Flexibility and diversification are the watchwords when reviewing absolute return strategies

Absolute return funds have seen a surge in interest over the past few years followed by a period of disillusionment as many have failed to deliver on their promise of protecting capital in the recent market turmoil. The interest was for the most part motivated by the high degree of equity volatility, particularly in the wake of the TMT bear market, and the desire for investors to achieve a smoother path to their objectives. The disillusion has come as some of these funds failed to live up to their promise in one of the most extraordinary periods in financial markets where long-term relation...