Fundsters looking for premium returns in absolute return funds are in for a surprise.
The Wall street Journal
's Daisy Maxey Investors writes
that such funds are good risk mitgators but fail in delivering consistent positive returns.
Of 24 absolute return funds tracked by Morningstar, most reportedly performed better than the S&P 500 index in 2008, and most of those funds delivered positive, albeit lackluster, returns in 2009 in comparison with the index returns.
Maxey cites Putnam Absolute Return 100
], Ivy Asset Strategy
] and T. Rowe Price Capital Appreciation
] as examples of underwhelming AR funds.
, chief executive of Tuttle Wealth Management LLC, was quoted saying that "...there will be a lot of absolute-return funds coming out that will be what I call 'no-return funds.'"
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