Posts Tagged ‘absolute return’

The Point Of No Return

Monday, July 19th, 2010

It seems that no funds are consistent enough to weather the worst economies, no matter how reliable they seem.

  • In the wake of the economic crisis, more people are investing in “absolute return” funds - portfolios that supposedly deliver gains in any kind of market.
  • Firms advertise these funds as low-risk investments because they focus on short duration and high quality securities.
  • It seems, however, that the name of these funds might be misleading. In recent months they have been gaining little, and in some cases even been posting losses.

Facts & Figures

  • The Aston/New Century Absolute Return exchange-traded fund lost 9.51% in June

Best Quote

“You just have to be careful that absolute return doesn’t turn into no return.” – Mr. Tuttle, Financial adviser