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Absolute Return Fund |
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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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