Misunderstood? The brave new world of absolute return

Absolute Return funds have come under intense scrutiny in recent years with a deluge of information about how risky, expensive and ineffective they are. Is there a case that they may simply be misunderstood? To answer this question properly, first we need to go back to basics and identify what an absolute return fund is. As the name suggests, this type of fund aims to deliver alpha irrespective of benchmarks or peer comparisons. True active managers focus on operating in areas in which they have experience, skill, confidence and the opportunity to achieve their long-term objectives. ...