How to pick AR strategies in time of market stress

With every market crisis and its consequent downward turn in stock prices, the concept of absolute return funds regains momentum and flows to these products follow suit. However, ‘absolute return' is a very broad term that includes funds of a very diverse nature. For that reason, in 2011, Morningstar overhauled the way it categorises UCITS alternative funds within its own fund categorisation system by aligning them to its usual approach, which is to delve into the underlying investment portfolio and strategy implementation in order to make more accurate and homogeneous comparisons. Th...