While absolute return strategies can help protect the gains you have made over the nine year bull run, it’s important to understand how any one strategy might impact your portfolio. In our latest paper, “Can Absolute Return Protect Against The Comeback of Volatility?” we discuss why you need to ignore categorization and instead focus on a different set of outcomes, namely correlation, volatilities, and return.
By focusing on absolute return outcomes instead of categorizations, you can glean practical insight into their use:
Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal and fluctuation of value. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. Risk controls, as referenced, do not promise any level of performance or guarantee against loss of principal.