Absolute Return Fund

Absolute Return Fund

A mutual fund or other investmentcompany that takes both long and short positions in order to produce a gain, or at least avoid a loss, regardless of overall market conditions. The idea behind an absolute return states that during a downturn, the gains on the short positions (which produce gains when security prices drop) offset the losses on the long positions. In other words, an absolute return fund seeks to combine the accessibility of a mutual fund with some of the strategies of a hedge fund. Critics contend that absolute return funds carry higher risks of loss than their proponents admit.
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Traditional funds may well do better when markets are strong but an absolute return fund just aims to make steady progress.
And with new income-oriented products such as managed payout funds and absolute return funds, that's exactly what appears to be occurring.
The Emirates Emerging Market Corporate Absolute Return Fund is a diverse portfolio of fixed income securities, actively managed by the fixed income team at Emirates NBD Asset Management to maximise total return whilst minimising risk, by investing primarily in high-yield corporate bonds of issuers from global emerging markets.
has joined the firm as a trader for the General Partner and Portfolio Manager for the new Cutler Absolute Return Fund, LP (CAR).
HSBC Global Asset Management has announced that it is planning to launch a European Absolute Return fund next month.
LONDON, February 26, 2010 /PRNewswire/ -- AEGON Asset Management is launching a UK Equity Absolute Return Fund which aims to capitalise on the group's successful UK equity investment process from its award winning UK equity team*.
It is a global macro or relative value absolute return fund that has exposure primarily to global fixed income and foreign exchange markets.
One is to use an absolute return fund or management strategy for stock market investment; although I would stress that the relative success of these is not proven.
SAN FRANCISCO -- Wells Fargo Funds Management, LLC, the investment advisor to Wells Fargo Advantage Funds, announced today the launch of the Wells Fargo Advantage Absolute Return Fund (WARAX), which invests substantially all of its assets in a master fund that is managed by respected institutional money manager GMO LLC.
Henderson multimanager Absolute Return fund is also worthy of consideration.
Zenith's 'recommended' rating has received 3 funds, including GAM Absolute Return Fund, Goldman Sachs Global Strategic Bond Fund and JP Morgan Strategic Bond Fund.
Dalton Strategic Partnership (DSP) has appointed Gaurav Pant as investment advisor to the new MST Indian Absolute Return Fund (MSTIARF).