Wary investors turn to absolute return vehicles

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Most investors cannot afford to lose money, so are increasingly looking toward absolute return vehic...

Most investors cannot afford to lose money, so are increasingly looking toward absolute return vehicles, according to Richard Tomlinson, head of multi-strategy products at Old Mutual Asset Managers. He said hedge funds form ideal absolute return investments. That is because they are alpha oriented, using various tools in order to hedge out unwanted risks. Furthermore, they can benefit from a position they believe will rise or fall in value. Another advantage is that hedge funds are unlikely to be aligned toward a benchmark. Tomlinson said there is a wide universe of hedge fund strategies...

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