Absolute Return strategies seek to deliver positive returns — regardless of market direction. They pursue opportunities in many asset classes and many countries. The objective is to maximize returns within a given risk budget.
Total Return investing seeks to deliver attractive risk-adjusted returns while allowing moderate correlations to traditional portfolios. These strategies are generally long-biased and may pursue opportunities in many asset classes and many countries.
Stocks have historically produced higher long-term returns than other assets, but typically at the price of higher volatility. Research has identified trends and anomalies that we believe may help investors seeking to beat benchmarks while reducing dependence on equity-market direction.
The year 2014 is the 80th year anniversary of the publication of the famous book on Security Analysis by Graham and Dodd (1934) and the 30th anniversary of Warren Buffett’s claim about the success of investor’s from the “town” of Graham-and-Doddsville. It is interesting to look back and evaluate how their claims have performed.