The Absolute Return LLC has launched a family of five absolute return portfolios that aim to deliver positive returns regardless of the direction of the market.
Each aims to outperform the three-month Treasury bill, with targets ranging for 8% for the income-oriented portfolio to 15% for the growth-oriented long/short portfolio.
“We believe the economy is in a long-term period of sluggish growth where conventional investment methods will fail to deliver the rates of return people expect,” said Bob Palmerton, chief executive officer of The Absolute Return. “In fact, real returns in U.S. equities exceeded 6% on an annualized basis in only 14% of the years since 1901, most of them in the last 15 years. Baby Boomers and those retiring over the next 10 to 15 years who have placed their faith in buy-and-hold investment strategies are in for a surprise.”
Palmerton added: “The time has come for hedge fund-like alternative investment strategies that pursue absolute returns while managing risk, to become a mainstream component of investors’ portfolio.