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The Case for Absolute Return Strategies - Part Four

October 29, 2021

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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. 

In the series, “The Case for Absolute Return Strategies,” we discuss why we believe absolute return investments are particularly important components of a properly diversified portfolio in today’s investment climate. Through charts and succinct commentary, our previous three installments have explored:

  1. Challenges faced by traditional “60/40” asset allocation strategies
  2. Tailwinds for absolute return strategies
  3. The importance of selecting elite managers

In this fourth and final installment, we look at a variety of more specific opportunities we are seeing across absolute return strategies today.

Conclusion

We believe that opportunities to generate attractive returns and alpha in absolute return strategies are as strong as they’ve been in years. The value proposition of these strategies for our clients remains compelling at a time when traditional long-only returns appear historically challenged.

 

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 »

The Case for Absolute Return Strategies – Part Three

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.

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.