Special Reports » OTHER REPORTS » ABSOLUTE RETURN STRATEGIES

— Steve Goldman, Pimco

Institutions have been slow to adopt absolute return strategies. But with the high returns and versatility offered, they are soon likely to catch up. Tim Cooper reports.

Absolute return strategies are a rising trend among institutional investors. But will this fad’s flame disappear in a puff of smoke or grow into a roaring bonfire?

An absolute return strategy seeks to achieve positive returns in both up and down markets. This is in contrast with a relative return strategy, which measures a fund manager’s performance against a market benchmark or index.

— Pascal Blanqué: CIO at Crédit Agricole Asset Management

Pascal Blanqué, of Crédit Agricole Asset Management, outlines how the firm has long developed and implemented diversified strategies within the absolute return universe.

The absolute return market is booming.

Currency management was developed some years ago and is now a source of added value on its own. Nicolas Boitout, London-based specialist answers the tough questions.

— Mathieu Ullman: specialist at Crédit Agricole Asset Management

Long/short equity, is an innovative process. Mathieu Ullman, a Paris-based specialist, gets to grips with the issues.

With less volatility and low correlation to other asset classes, bank loans make for an exceptional absolute return strategy, writes Kevin Perry.

Bank loans are actual loans (not structured instruments) made by commercial or investment banks to medium and large, generally non-investment grade companies, primarily in the US and increasingly in Europe.