Absolute Return Funds

Absolute return funds, also known as non-directional funds are designed to create steady returns regardless of market conditions. Absoute-return funds offer lower risk but in turn are likely to yield a lower return. Typically absolute return funds aim for an 8-10% return - above the long term rate of return of bonds but lower than that of Directional Funds.

See also:

Introduction to Hedge Fund Investing, Directional Funds