Deep Dive: Absolute return managers adjust to the 'pandemic paradigm'

The Emperor's new clothes?

Jim Neumann of Sussex Partners dives into the absolute return industry.

In 1837 Hans Christian Andersen wrote a folktale entitled The Emperor's New Clothes which always seems to come to the forefront when modern day markets' behaviour deviates from academic investment reason.   Since March of 2020, when markets reeled from the pending pandemic effect on global economies, world governments have used record amounts of monetary and fiscal stimulus to attempt to shore up the world economy.   While market crises have largely been avoided, the sheer size of the coordinated effort has led asset prices to surge, in some cases diverging from any fundamental valuat...