An investment strategy aiming for positive returns regardless of market conditions.
Description
Absolute return strategies seek to generate consistent positive returns in both rising and falling markets, unlike relative return strategies that benchmark against indices. Popular in hedge funds and family office portfolios, these strategies may use short selling, derivatives, or arbitrage to achieve goals. They prioritize capital preservation and steady gains, appealing to high-net-worth clients seeking stability. However, high fees and complex strategies require careful manager selection.
