Repairing a TAR-red reputation: Time to show some love to the targeted absolute return sector

Deep Dive into absolute return

It has been a rocky road for funds in the IA Targeted Absolute Return sector in the past decade or so, as investors have gradually fallen out of love with it.

Pessimists would tell you the reasons for the fall from grace are simple - absolute return funds have not delivered on their promises to investors, with capital not being protected during periods of volatility, while decent returns have not been garnered in the good times either. Everything about the sector has been challenging - name, definition and, perhaps most importantly, its wide range of constituents. The sector's initial success came out of the credit crunch, when investors' hunger for funds with lower volatility reached new heights. The premise of consistent mid-single digit ...