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Most traditional investment strategies focus on measuring results "relative" to an industry benchmark. Success is achieved when returns exceed or match the benchmark, regardless if the results were positive or negative. For example, if the portfolio declines -25% while the benchmark declines -30%, the manager has exceeded their objective.
While the stated goal for traditional managers is to beat a market index, Absolute Return investing seeks to produce positive results, regardless of a benchmark. The result is more consistent, positive returns that are not dependent upon a rising market benchmark to succeed.
Learn Why Managing Volatility Matters. |
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