Absolute return investing is a strategy designed to achieve positive returns regardless of market conditions. The objective is to generate returns that are not dependent on the direction of the market, but rather on the skill of the manager. The goal of absolute return investing is to provide consistent, low-volatility returns over time, rather than trying to outperform a benchmark.
One of the key features of absolute return investing is the focus on risk management. The idea is to minimize the downside risk by using various strategies such as hedging, short-selling, and diversification. This allows the investor to reduce their exposure to market fluctuations and avoid significant losses.
There are various types of absolute return strategies, including long/short equity, global macro, managed futures, and market-neutral. Long/short equity strategies involve buying stocks the manager believes will perform well, while also shorting stocks the manager believes will perfo
