The role of an absolute returns’ portfolio is unique to each asset owner with each portfolio having a unique composition of idiosyncratic returns uncorrelated to traditional asset classes. However, blending too many manager styles can destroy alpha, so how are investors balancing this challenge?
Speakers:
Anastassia Juventin, portfolio manager, hedge funds and alternative strategies, AMP Capital
Bruce Tomlinson, head of alternative strategies, Sunsuper
Moderator: Laurence Parker-Brown, institutional content producer, Conexus Financial
Key takeaways
- The managers that chose to override systematic processes to act with a more discretionary approach avoided some of the declines in March but also risked missing out on the rally.
- More than just being a defensive part of the portfolio – the absolute return strategies should be identifying alternate betas (not equity beta) and alpha — with preferably steady streams of returns.
- There is still a while to go before asset owners can comfortably internalise the absolute returns portion of the portfolio.
