Introduction to Absolute Return Funds
Absolute Return Funds are internationally known as Hedge Funds.
Hedge Funds are often deemed high risk/high return investment products.
This is because they have gained notoriety for making rich investors, like George Soros, John Henry & others, very rich.
Hedge Funds use diverse investment strategies, so are typically deemed out-of-reach to the average investor.
In fact, Absolute Return Funds are deemed to have the same volatility of bonds but with a much higher rate of return.In this article you will discover:
- What is an Absolute Return Fund?
- How Absolute Return Funds play a part in your portfolio
Traditional investment funds tend to invest directly into stocks, which may go either up or down.
Absolute Return Funds have greater scope to use derivatives, short positions, and non-traditional securities to ensure their positions are protected in bearish markets.Absolute Return Funds are massively diverse in size, scope and philosophy. The investment strategy employed by the fund manger will dictate whether investors receive returns in the form of income, capital appreciation, or both.
The risk profile of absolute return funds can also range from very conservative to very aggressive.
The difference in return and risk profile is determined by the exact instruments used by the fund manager.
These methodologies will be highlighted in the fund's Product Disclosure Statement or Prospectus.The main characteristics of Absolute Return Funds are:
- Non-traditional investment techniques such as short-selling, derivatives, warrants
- Performance incentives to align investor and manager interests
- The use of gearing to increase investment positions and potential returns
- Accepting pf new investments to effectively implement their complete investment strategy
- Minimal exposure to potential market actions
Their entire reason for being is to maximize your return on investment.
An Absolute Return Fund uses various investment instruments to derive the best consistent performance to you.
Benefits of investing in an Absolute Return Fund are:Returns in rising and falling marketsAbsolute Return Funds main advantage over regular stocks is that they aim to give you return in both rising and falling markets.
One of the keys to successful wealth accumulation is to continually move forward.
Absolute Return Funds ignore bearish and bullish trends to be consistent performers in your portfolio.
Diversification in non-traditional investment instrumentsDiversification in your investment portfolio is a key to success.
Your portfolio should already contain shares, bonds, property, cash, fixed interest investments.
Absolute Return Funds offer another weapon in your wealth accumulation armoury.
You are able to diversify your portfolio further which gives you more security and, over time, a better return on investment.LiquidityUnits in Absolute Return Funds are often available directly from the fund manager but are easily found, and traded, on the stock exchange.
This makes your investment highly liquid.
You have the ability to increase, or decrease your stake, in a particular fund at the click of a button.Returns from both income and capitalAbsolute Return Funds can give you both returns in both income and capital.
This spread will assist your tax position as you are not overly exposed to any one kind of return.
Risk ManagementAbsolute Return Funds are actively managed.
The managers also tend to have large amounts of their own personal wealth invested to reassure the investors that the managers are always trying to maximize their return on investment..
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Alpha Hedged Strategies Fund Passes the $100 Million in Net Assets Mark and Continues to Attract New Investors
Alternative Investment Partners, LLC (AIP) is pleased to announce a number of significant milestones for its Alpha Hedged Strategies Fund (Ticker: ALPHX). The Alpha Hedged Strategies Fund is an innovative, open-end mutual fund designed to minimize equity market exposure and volatility by employing a variety of absolute return strategies.
The Fund represents the next generation of product for hedged alternative strategies investing, and is open to all investors.The Alpha Hedged Strategies Fund continues to attract new investors, and recently passed the $100 million mark in net assets.
The Fund has also recently qualified to be listed daily in print publications such as the Wall Street Journal, Barron's and The New York Times."The registered advisor community has really warmed up to...
Hedge funds > Alpha Hedged Strategies Fund Passes the $100 Million in Net Assets Mark and Continues to Attract New Investors
FinLab SA Announces its First North American Office and the Appointment of Mr. Kristofer T. Kelleher as Director of Sales
(ContentDesk) January 26, 2006 -- FinLab SA provides advanced software products and services to investment professionals making asset allocation decisions on Hedge Funds, Fund of Hedge Funds and Traditional Funds.Mr. Denis de Pentheny OKelly CEO of Finlab SA said given that nearly 50% of the $1.1 trillion hedge fund market and a major portion of the traditional fund market are based in the US, this makes it a key strategic initiative to develop our presence within the US. The acceptance of our product Packhedge" by investment professionals globally and more especially in the US, meant that we needed to deploy locally based resources to exploit the potential that such a large market affords. Finlab SA already has built a substantial base of US clients which provides an ideal platform upon which to launch new products and services to current and prospective clients. We intend over the coming year to build a best in class organization in North America that will sell, market and support...
FinLab SA Announces its First North American Office and the Appointment of Mr. Kristofer T. Kelleher as Director of Sales
Hedge funds > FinLab SA Announces its First North American Office and the Appointment of Mr. Kristofer T. Kelleher as Director of Sales
The Best Performing Exchange Traded Funds of 2005 No It’s Not Energy Related
San Francisco, CA (ContentDesk) January 2, 2006 -- The results of the highest performing ETFs in 2005 may surprise some people. The consensus of most popular opinion is that energy related funds performed best in 2005. This is not the case. Most of the profits this year came from funds invested in foreign equities.The fund performing the best was the iShares S&P 40 Latin America Index with a 55% gain, symbol ILF. The average volume traded in this ETF was around 186,000 shares.The next on the list weighing in with a 54.34% gain was the iShares MSCI South Korea Index.
The average volume traded in this fund was about 667,000 shares. The volume traded in this fund was brisk and it is one of the Asian funds to watch in 2006.The best performing Energy Sector fund came in fourth. It was the Merrill Lynch Market Oil service HOLDRs. This fund gained 51.35% for the year and trades an average of
4,000,000 shares. The other top performing funds were a mixture of regional funds from...
Hedge funds > The Best Performing Exchange Traded Funds of 2005 No It’s Not Energy Related
Hedge Connection Registers 100th Hedge Fund Member--New Service Helps Hedge Funds Meet Investors
New York, NY (ContentDesk) April 18, 2006 -- Hedge Connection Inc. ( Hedge Connection ), the first web-based investor introduction service, today announces that it has achieved an important milestone with the registration of its 100th hedge fund member.Lisa Vioni, the founder and President of Hedge Connection said, We are pleased to welcome our 100th hedge fund member to Hedge Connection. Hedge Connection is the only service available that provides hedge fund managers direct access to investors.
Our 500+ investor members and 100 hedge fund members are using our platform to source ideas and build relationships.
Hedge funds representing all strategies and sizes have joined recognizing the value of our service."Launched in October of 2005, Hedge Connection serves the needs of hedge funds looking to meet investors and qualified investors looking for hedge fund investments.
Hedge Funds pay a low annual membership fee to join Hedge Connection while qualified...
Hedge funds > Hedge Connection Registers 100th Hedge Fund Member--New Service Helps Hedge Funds Meet Investors
The Exchange Traded Fund Alternative
(ContentDesk) October 13, 2005 -- The earth under the investing landscape is shifting quickly. Buy and holding stocks and investments in traditional mutual funds are no longer providing the investment returns they once did. Many investors do not have the time or knowledge to be constantly buying and selling stocks on a short term basis. Exchange Traded funds provide a major alternative to mutual funds and index funds. Exchange Traded Funds provide major advantages over Mutual Funds.
Rather then being priced at the end of the day, their price is updated during the day like stocks. They can be bought and sold like stocks. Unlike Mutual Funds, Exchange Traded Funds can also be shorted like stocks.Their expense ratios are much lower then mutual funds, thus saving investors money. The numbers and types of exchange traded funds are constantly growing. You can invest in indexes, Gold and Silver, Energy, specific countries such as Mexico and Brazil, Bonds, and exchange traded funds made...
The Exchange Traded Fund Alternative
Hedge funds > The Exchange Traded Fund Alternative
The Best Performing Exchange Traded Funds of 2005 No It’s Not Energy Related
San Francisco, CA (ContentDesk) January 2, 2006 -- The results of the highest performing ETFs in 2005 may surprise some people. The consensus of most popular opinion is that energy related funds performed best in 2005. This is not the case. Most of the profits this year came from funds invested in foreign equities.The fund performing the best was the iShares S&P 40 Latin America Index with a 55% gain, symbol ILF. The average volume traded in this ETF was around 186,000 shares.The next on the list weighing in with a 54.34% gain was the iShares MSCI South Korea Index.
The average volume traded in this fund was about 667,000 shares. The volume traded in this fund was brisk and it is one of the Asian funds to watch in 2006.The best performing Energy Sector fund came in fourth. It was the Merrill Lynch Market Oil service HOLDRs. This fund gained 51.35% for the year and trades an average of
4,000,000 shares. The other top performing funds were a mixture of regional funds from...
Hedge funds > The Best Performing Exchange Traded Funds of 2005 No It’s Not Energy Related
Hedge funds
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