Absolute Return

Absolute Return strategies are those mandates in a portfolio that aim to produce consistently positive returns, irrespective of the direction of the overall financial markets.  Executed efficiently, they provide portfolios with an element of return that is structurally uncorrelated to financial market performance.  Absolute return strategies are characterized by either the direction of the positions taken, or the nature of the analysis that lead to an investment decision.  Long-short and market-neutral strategies refer to the former, while opportunistic, event-driven, arbitrage, distressed, and macro strategies refer to the latter. 

Absolute return strategies are a large part of our overall portfolio process.  We utilize our own in house research to execute a component of this portfolio and seek skilled external managers with complementary strategies as a way to gain exposure to certain specialized areas.