Absolute Return

Absolute return measures the total return of an investment, independent of benchmarks or market conditions. It focuses purely on the gain or loss realized, making it useful for evaluating performance in private fund strategies. Absolute return strategies often aim for positive returns under any market conditions by employing a range of asset classes and techniques.

• Total return of an investment, independent of benchmarks.
• Used in strategies like hedge funds or private equity.
• Aims for positive returns regardless of market conditions.
• Focuses on pure gain or loss.