Investors cautioned to think twice about absolute return funds

What do hedge fund managers mean by ‘absolute return’?

tete-wheat

Alastair Smith, Harmonic Capital Partners
Absolute returns are a pretty opaque concept and can mean quite different things to different people. It is easier to consider what absolute returns are not. John Lennon once said, “I believe in everything until it’s disproved… It all exists, even if it’s in your mind.” Strangely, this is a philosophy which can be applied to absolute returns and should be applied if investors want to avoid paying two and 20 for fantasies.

The best way to do this is by meas