Retail funds learning to expect absolute returns

The definition of absolute return funds in the regulated retail world is a nebulous one, defined mostly by the intentions of the managers themselves. Unlike absolute return hedge funds, regulated retail portfolios cannot short stocks or use leveraging as tools to achieve absolute returns. Despite that, we have ended up with a philosophy of absolute return in the management of retail funds. This philosophy centres around whether a manager invests with regard to an index or has the flexibility to take positions unhindered by stock and sector weightings. An example of this would be how...