Organization market as. Absolute return
Published August 16th, 2008 in UncategorizedAbsolute return is the investment performance of something regardless the performance of its asset class market. Absolute Return strategies aim to produce positive returns in both bull and bear markets, independent of traditional performance benchmarks such as the S&P 500 index.
The opposite notion is the relative investment performance.
Absolute return strategies, better known by the name “hedge fund strategies”, are kinds of investment strategies which can produce a sustainable return under any kind of market condition.
Frequently used absolute return strategies include:
- Long/Short
- Market-neutral
- Event-driven
- Cyclical trading
- Long bias
- Short bias
However, there are also some “Long Only” or “Short Only” hedge funds which claims that they are using absolute return strategies.
An absolute return Strategy should have very low correlation with market performance, thus can effect the asset allocation, stock picking or market timing abilities of the fund manager.
79 Comments to “Organization market as. Absolute return”
Please Wait
Leave a Reply
You must log in to post a comment.