Sam Liddle: Don't throw the baby out with the AR bathwater

clock • 4 min read

The absolute return sector has taken a beating recently but it is important not to tar the very diverse sector with the same brush, writes Sam Liddle, and clear distinctions must be made

The absolute return sector has attracted some criticism in recent weeks. Much of this has been focused on performance during Covid-related sell-offs in markets. This poor performance has seemingly led to some pretty hefty redemptions for some funds the sector. One of the biggest gripes is the sheer size of some of the negative returns (in some cases, up to 30%) in a sector that was meant to smooth returns for investors. The danger here though, is to tar the entire sector with the same brush. In a very diverse sector, clear distinctions must be made. Markets have been uniquely tough to...

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