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Key Trends in Long Only Absolute Return Funds

The 2008 global financial crisis saw long-only absolute return funds lose $84bn in AuM. Since then, the industry has experienced steady growth, hitting a peak of $293bn in 2017. This works out to a compound annual growth rate of 11.9% over the 9-year period. The positive trend reversed in 2018 as the sector recorded $33.5bn of AuM decline, largely driven by $20.6bn of net outflows as investor risk sentiment was dampened due to the poor performance, as shown by the Eurekahedge Long-Only Absolute Return Fund Index recording losses of 10.4% in 2018.

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