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Absolute Return investing attempts to produce positive results regardless of market trends. Absolute Return managers are not bound by traditional "long only" strategies, and generally include methods to profit from both rising and falling markets.
In the frenzied Bull market of the 1990's, investing for Absolute Returns was not a priority for most investors. With market indexes regularly posting double digit annual growth, investment protection was redefined as diversification and risk was often described as time spent out of the market.
The past decade has not been kind to long only, index based investment methods. Over the past decade traditional asset allocation has failed to provide the risk management and downside protection diversified investors have come to expect, failing miserably in 2008. The result is a renewed attention to Absolute Returns.
It is now widely accepted that Absolute Returns are an increasingly important part of a diversified portfolio. Anchor Capital is a leader in providing Absolute Return solutions.
Relative versus Absolute Return Investing. |
