Their staff's bonuses are tied to the firm's
goal of absolute returns, so if investors lose money, the analysts suffer, too.
According to Jim Smigiel, the CIO
of absolute return strategies at SEI Investments, «With other speculative investments, like private equity and venture capital, you can't check your phone every five minutes.
In addition to diversifying client portfolios not only by asset class, but also by investment strategy through an allocation to a tactical investment that uses a quantitative approach, Bainbridge highlighted the use
of an absolute return fund and simply using cash.
Prior to Newscape, Charlie spent 17 years at HSBC Global Asset Management as the
Head of Absolute Return managing a multi-asset fund range with assets in excess of $ 3 billion.
Jim Smigiel,
CIO of absolute return strategies at SEI Investments Co. stated that «with other speculative investments, like private equity and venture capital, you can't check your phone every five minutes.
Putnam studies the impact
of absolute return on portfolio and pension plan efficiency and diversification.
You're right about the main reason, but that's because most people don't understand the
purpose of Absolute Return investments is to diversify a portfolio — not act as a substitute for long - only equity exposure (which as you say can be obtained very cheaply)
These Australian equity hedge fund managers employ a
variety of absolute return strategies that when combined produce a portfolio that has the ability to deliver positive performance irrespective of whether the equity market is rising or falling.
He has previously worked for Overlay Asset Management, ABN Amro Asset Management and Fortis Investments as a senior currency manager for a broad
range of absolute return, hedge fund and currency overlay mandates.
Continuing his annual Finance Blogger Wisdom series, Tadas
Viskanta of Absolute Returns asks: Ten years have passed since the onset of the financial crisis.
Unfortunately, Ed Easterling manages a fund of hedge funds and he points us in the
direction of absolute return strategies (such as long - short strategies, arbitrage strategies and many others) as implemented by professionals.
A ~ 5 minute video using the Regime Relative Strength Backtest to look at some
parts of an Absolute Return strategy and ways to improve upon it.
Other examples include Blackmoon which will launch a high yield fund or NaPoleonX which will launch a
series of absolute return funds based on traditional equity indices.
That said, the Independent Funds Team did still make use
of absolute return funds, she added, continuing: «It is the «Merlin-esque» type of absolute return, however» said Sillars.