Acadian’s Multi-Asset Absolute Return Strategy seeks to exploit inefficiencies across and within global markets to deliver a diversifying stream of returns, with low correlations to equities and other asset classes, while maintaining a prudent level of risk. The strategy is implemented via long/short positions across and within five major asset classes: Equities, Bonds, FX, Commodities, and Volatility. It uses a broad set of factors to extract returns from asset allocation and market selection.Strategy Profile Learn More
The strategy is implemented via long/short positions across and within five major asset classes: Equities, Bonds, FX, Commodities, and Volatility. Specifically, we aim to deliver:
- Return target: Cash + 5%
- Volatility target: 8%
- Low correlations to equity and bond markets
A typical portfolio seeks to incorporate diverse sources of returns in a risk-balanced fashion. We distinguish three fundamental sources of return in terms of the types of positions we can hold:
- Long-Term Allocation: returns from holding broad asset class betas.
- Dynamic Allocation: returns from dynamically adjusting these betas.
- Market Selection: returns from going long/short markets within an asset class, zero net asset class exposure.