Have Absolute Return Funds had their day?

Thrugelmir

Aretnap said:

BananaRepublic said:

I am gobsmacked that a fund can perform so poorly during five years of healthy stock market returns.

An absolute return fund aims to produce a steady positive return regardless of stockmarket performance. A perfect absolute return fund would return 3-4% in a year that the stock market went up by 30%, then another 3-4% the following year when the stock market crashed by 50%. So comparing its performance to that of the stock market as a whole is arguably to miss the point of the fund.

What's your personal objective is the question that has to be asked? Once you lose your human capital. The ability to replenish savings from working. Ones perspective changes. Risk takes on a very different meaning.