Where should investors look for differentiated returns?

Many successful funds nearing capacity

Over the past 18-24 months, markets have been dominated by political uncertainty, central bank intervention and the twin threats of rising interest rates and inflation.

What has this meant for the broader asset classes? Traditional ones, such as equities and fixed interest, have become more correlated. The chart below shows the risk/reward characteristics of the UT Targeted Absolute Return sector over the last five years.  Look how closely this mixed cohort is clustered - more than ever in history. It is now harder than ever to find a fund that is doing something different. Do financials pose risks for investors as sector correlations leap to 2008 levels? This is surprising when you have long-short, market-neutral, global-macro, multi-asset, eq...