Sam Liddle: Absolute return - the goalkeeper in your team of funds

The question of exactly what constitutes ‘absolute return' taxes fund managers and investors in the sector alike. It is clear it means very different things to those who manage absolute return funds and, as such, it is perhaps no wonder investors are confused. To our mind, the sector definition is inadequate. ‘Funds managed with the aim of delivering positive returns in any market conditions' is simply a statement of intent - it does not hold fund managers to any specific parameters, risk limits or performance targets. Even this ‘intent' is problematic. It could reasonably be assumed ...