Absolute beginners?

Absolute return vehicles may be a relatively new means of investing, but in the current economic downturn, these funds can provide a better means of preserving capital

For retail investors, absolute return funds may only be in their infancy, but the deterioration in global economic fundamentals that has sent the FTSE below 4,000 again has sparked renewed interest from investors looking to smooth returns and preserve capital. Some absolute return funds have failed to provide positive returns, yet the best of them have produced positive returns - even in the most volatile bear market since the Great Depression. In contrast to traditional funds, the investment objective of absolute return funds is to generate positive returns in excess of cash on a consist...