IA Targeted Absolute Return
The “ class act ”: BlackRock European Absolute Alpha
BlackRock European Absolute Alpha is one of only four onshore IA Targeted Absolute Return vehicles to make it into Square Mile ’ s Academy of Funds , and Hovenden refers to it as the “ class act ” in the sector . He says that while the fund is down 5.3 % so far this year , owing to its quality growth bias , it provided positive returns of 9.9 % and 8.6 % in 2020 and 2021 respectively . “ The fund has very low net exposure and , being wholly invested in stocks on the short side , I would expect it to prosper if there is a recession ,” adds Hovenden . BlackRock European Absolute Alpha is also on the FE Invest Approved List .
A full-throttled play : VT Argonaut Absolute Return Norris invests in stocks with significant earnings upside potential and shorts those where the opposite is true . “ The market exposure should therefore be hedged when the market goes down , though this might also limit returns when the market goes up ,” he explains . The fund is uncorrelated to most mainstream assets and has made strong returns – it is the best performer in the sector over five years and second best over 10 . Yet it is not suitable for risk-averse investors – Norris is known for making punchy , contrarian bets , which can lose money when the market rallies .
The inflation buster : JPM Global Macro Opportunities
JPM Global Macro Opportunities not only aims to make a positive return in any market condition , but has set itself a punchy target of 7 % a year . The FE Investments team says that while the fund has slightly undershot this level since inception , it can still reach its objective over the long term . “ We also like the flexible approach the fund can take by using many different asset classes to construct the portfolio ,” it says . “ Additionally , there is a strong focus on risk management as JPMorgan is one of the leading experts in this field .” The fund has made 61.7 % since launch in February 2013 .
Issue 85 - June 2022 / 53 /