Absolute Return

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Absolute Return

The return on an asset, fund, or other investment expressed in dollar or percentage terms. That is, the absolute return is the return relative to the investment itself. For example, if one buys shares in a stock for $1000 and sells them for $1500, one may say that one has an absolute return of $500 or 50%. There is little analysis of the absolute return beyond that. Most of the time, the absolute return is less helpful to investors than the relative return, which compares the return on an investment relative to other, similar investments or to the market as a whole. See also: Absolute Return Fund.
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As alternative investment strategies become more mainstream and investors continue to seek out absolute returns; operational efficiency and service delivery innovation will become increasingly critical.
("BFC"), established in 2006, specializes in investing in performance-enhancing solutions to deliver positive absolute returns to well-diversified portfolios, while reducing volatility and risk.
I will add one further qualifier for you to mull over, the concept of absolute returns. Alpha is all very well but there may still be little comfort, for example, in the knowledge in a market downturn that your investment has outperformed its benchmark simply by not losing quite as much in value!
Too many retail investors focus on absolute returns while ignoring the reason they invest in the first place--to maintain their purchasing power in the future or to fund a future dream or obligation.
When smart asset owners get together (a clubby group, you are), liability-based returns have replaced absolute returns as the topic du jour-or they should have, at least.
Absolute returns to farmland have shown two valuable qualities - high absolute returns with low return volatility, giving farmland a favorable risk adjusted return profile.
The investment objective of the fund is to generate consistent, high levels of positive absolute returns from a portfolio of both long and short Indian equities.
Illiquidity Premium in Absolute Returns but Not in Residual
Traditionally, funds that aim to generate positive absolute returns in all market conditions (the aim of an absolute return fund) have been limited to the hedge fund world.
At the beginning of the year at a hedge funds conference in Dubai, representatives from many leading 'funds of funds' explained the merits of seeking 'absolute returns' through hedge funds investments.
Privalto UK head, Sisouphan Tran, said, 'The Privalto UK stabiliser funds are designed to offer absolute returns combined with capital protection as part of a diversified portfolio.
Hedge funds generally seek to deliver absolute returns under all market conditions, making them particularly attractive in a sluggish global investment climate.