Senate 2010: Risk-adjusted absolute returns prosper in volatility

Absolute return funds have grabbed investors' attention as increased volatility drives them to look for absolute returns through all market cycles.

Allianz’s Harald Sporleder has benefited from this appetite for absolute returns, with his Allianz RCM Discovery Europe Strategy long/short market neutral fund taking €120m (£104m) since its October 2009 launch. Sporleder and Ralf Walter co-manage the fund, which is a Luxembourg-domiciled Sicav. The Ucits III vehicle focuses on pan-European stocks. Two-thirds of the portfolio is exposed to high conviction stocks, complemented by positions with a shorter-term investment horizon. Sporleder says: “We believe markets in 2010 will continue to be volatile and have made significant changes t...