Correlation in Absolute Return

Periods of heightened volatility are expected in every investment strategy.  For hedge funds, the raison d’etre is to provide access to investment strategies that “hedge” out this volatility.  In most cases, the hedge fund will use leverage and negatively correlated assets to provide alpha with lower volatility than the S&P 500, or any other benchmark. When markets dip … More Correlation in Absolute Return

Absolute Return

Several years ago I began to tinker with the typical portfolio construction models offered to clients of the banks I worked at.  In training, we were told that the best models were those that allocated money to active, established money managers such as Franklin Templeton, MFS, etc.  Time taught me that even the Bill Miller’s … More Absolute Return