Quick Reads

The Case for Absolute Return Strategies - Part Three

July 28, 2021

Share on linkedin
LinkedIn

Past performance is not necessarily indicative of future results. No assurance can be given that any investment will achieve its given objectives or avoid losses. Unless apparent from context, all statements herein represent GCM Grosvenor’s opinion.

 

Select risks include strategy risks, manager risks, market risks, and structural/operational risks. 

The importance of selecting elite managers

In part one of our “Case for Absolute Return Strategies” series, we explored how traditional investments are facing challenges; in part two, we discussed some tailwinds that may benefit absolute return strategies. In this installment, we present our view that top decile hedge fund managers remain among the best available investments globally, without regard to the name “hedge fund.” We also look at how top managers continue to attract talent and capital, while underperforming managers contract, underscoring the importance of manager selection. 

 

Up Next

In the fourth and final installment, we’ll look at the current opportunity set for absolute return strategies and discuss what we believe are the most interesting and attractive investment themes, sectors, and regions globally. 

 

Read more about GCM Grosvenor’s Absolute Return Strategies

Also in This Series

The Case for Absolute Return Strategies – Part One

In the series, “The Case for Absolute Return Strategies” we discuss why we believe ARS investments are important components of a properly diversified portfolio. In this post, we look at indicators of how traditional asset markets are highly valued and future returns appear constrained.

Read More »

The Case for Absolute Return Strategies – Part Two

In the first part of the series, we looked at how traditional assets are facing headwinds for future returns from factors such as near-record valuations, historically low interest rates and credit spreads, and elevated risks. In the second part of the series we observe that, despite these challenges for traditional investments, tailwinds exist that we believe can contribute to alpha within absolute return strategies.

Read More »

Important Disclosures

For illustrative and discussion purposes only. The information contained herein is based on information received from third parties. GCM Grosvenor has not independently verified third-party information and makes no representation or warranty as to its accuracy or completeness. The information and opinions expresses are as of the date set forth therein and may not be updated to reflect new information. 

 

Investments in alternatives are speculative and involve substantial risk, including strategy risks, manager risks, market risks, and structural/operational risks, and may result in the possible loss of your entire investment. Past performance is not necessarily indicative of future results. The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by GCM Grosvenor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Certain information included herein may have been provided parties not affiliated with GCM Grosvenor. GCM Grosvenor has not independently verified such information and makes no representation or warranty as to its accuracy or completeness. 

 

Data Sources 

Bloomberg Finance L.P.

 

S&P. S&P and its third-party information providers do not accept liability for the information provided and the context from which it is drawn.

 

Hedge Fund Research (HFR).