Absolute Return
Absolute Return strategies are widely used investment strategies that offer an alternative to traditional asset classes and are a good way for institutions and investors alike to mitigate risk and further diversify their portfolio.
An Absolute Return fund is a type of investment vehicle that attempts to generate steady, positive returns in all market environments by using a variety of investment strategies such as derivatives, arbitrage, short selling, leverage, and more.
The goal of Absolute Return investing is to provide slow and steady annual growth over long periods of time with limited volatility. This can be achieved by encompassing a wide range of strategies such as the ones previously mentioned in order to navigate the market and generate growth with little to no correlation to traditional market returns.
Investors especially like Absolute Return strategies because they operate independently of market direction, are good in times of market downturns, and help to diversify down the risk of other portfolio investments.
For more information on Trend Following strategies please contact INDICES@HFR.COM
Examples of HFR Indices that employ Absolute Return strategies are listed below:
Absolute Return
| Index Name | ROR | Index Value | YTD | LAST 12M | LAST 36M | LAST 60M | |
|---|---|---|---|---|---|---|---|
| HFRX Absolute Return Index › | -0.17% | 1166.95 | 0.80% | 3.01% | 2.14% | 1.78% | |
| HFR Bank Systematic Risk Premia Equity Value Index | -0.39% | 1591.12 | -0.29% | -6.27% | 3.38% | -3.86% | |
| HFRI 500 EH: Equity Market Neutral Index › | -0.15% | 1352.27 | 1.25% | -0.12% | 1.46% | 1.90% | |
| HFRI FOF: Conservative Index › | 0.30% | 5899.56 | 3.09% | 4.13% | 5.53% | 4.06% |