Absolute Return Strategies
A fresh perspective to the risk/reward conundrum
Diversifying portfolio performance
Absolute return investing has in the past been a preferred strategy for institutional investors and high-net worth family office structures.
As market uncertainties continue to pressure private investors into taking on higher levels of equity risk, absolute return strategies offer a different perspective to the risk/reward conundrum as portfolios balance in reaction to uninspiring returns and increased volatility.
Absolute returns philosophy
At Evallon Global Investment, we adhere to a philosophy that seeks to deliver investment returns on an absolute basis. This means that regardless of how economies perform, our absolute return strategies provide the potential for positive returns when perhaps equity and fixed income returns weigh upon unfavorable market conditions.
Fresh perspective for private investors
Private investors have recently begun to realize the value in allocating a portion of their portfolio to facilitate absolute returns. Especially at at time where equity and bond valuations expose investors to higher levels of risk, absolute return strategies utilize a range of techniques that are generally unavailable to those used in the management of traditional portfolios.
Our macro and thematic investment process across a range of asset classes and key performing regions, seeks to minimize losses during periods of market duress. Assets are allocated in pursuit of beta as medium-term risks are managed through uncorrelated positions as short-term opportunities are capture by directional movements and tactical positions.
Multi-asset investment strategies are driven by thematic fundamentals that focus on major economic shifts are the macro level. Asymmetric opportunities typically emerge as structural inefficiencies give way to short-term price discrepancies until market corrections return prices to fair valuations.
Minimal correlation to major investment classes
Flexible positions and a proactive management style facilitates a rapid response to changing market conditions. Uncorrelated and hedged positions work independently from major market classes increasing the benefits of diversification as part of a diversified portfolio.
Absolute return strategies are not intended to outperform markets during favorable times. On the contrary, strategies are developed to deliver smooth returns irrespective of market conditions. By this nature, strategies are carefully managed to mitigate overall risk, whilst independent monitoring of each asset class adds an additional layer of protection.