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 or require of them
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Ann Arbor, MI (PRWEB) November 4, 2010
A Registered Investment Advisor based in Ann Arbor, MI has launched a family of “absolute return” portfolios geared toward positive performance over a reasonable timeframe regardless of the ups and downs of the market.
Each portfolio targets a rate of return higher than the “risk-free rate”, as measured by the yield of the 3-Month Treasury Bill. Annualized return targets range from 8% for an Income-oriented portfolio to 15% for Growth-oriented Long/Short portfolios relative to this risk-free rate, net of fees. Each portfolio is also actively managed to a portfolio volatility target using a measure called “drawdown” where drawdown targets, or maximum drop in monthly portfolio values from the previous peak, range from 4% for the Income portfolio to 10% for the Long/Short portfolios.
“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 or require of them”, said Bob Palmerton, CEO of The Absolute Return, LLC. “In fact, 30 year real returns in US 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”. He continued, “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’ portfolios. An investor, financial advisor/planner, or institution can now create a custom-tailored portfolio targeting a specific return/risk combination entirely from our family of managed portfolios without the hedge-fund hassles.”
Puneet Gupta, Chief Investment Officer of The Absolute Return, LLC, believes that equities, especially in the developed world, have been in a secular bear market since 2000 and expects this bear market to continue for many more years. This bear market has been marked by large price swings in all major asset classes within a general deflationary context. Even traditional diversification did not help as a hedge against losses during an intense deflationary phase of this secular bear market in 2008 when all major asset classes fell together. “Volatility is our friend”, Mr. Gupta commented, “Our proprietary fractal, cycle, and trend analysis models combined with a dashboard of selected technical indicators, a pulse on the global macro-economy, intelligent diversification with objective criteria, and sophisticated investment styles help us to 1) lower portfolio risk in any environment, 2) forecast and harness this volatility into absolute investment returns, and 3) provide portfolios that are uncorrelated with conventional investment strategies.”
For more information about The Absolute Return, LLC, its portfolio offerings and strategies, visit http://www.theabsolutereturn.com or call 888-412-4591.