Absolute return strategies

Investment banks are making use of their quantitative expertise and client knowledge to innovate algorithmic strategies that rival products typically offered by hedge funds. Shane Edwards, head of pricing & structuring at RBS Global Banking & Markets discusses the rationale and financial engineering behind these so called 'dynamic strategies'

With recent economic turmoil diminishing appetite for traditional long-only equity products, absolute return strategies are rising in popularity. Hedge funds should be seeing large inflows of investments, but many potential investors may have concerns including: large fees, 'black box' trading methods, weak internal controls, lack of regulation, key person risk, large minimum investment sizes and illiquid secondary markets.

- Absolute return strategies (PDF, 79KB)