Returns designed to be uncorrelated with market direction.

Market-neutral and hedge-style investing using long/short positioning and relative-value trades to target consistent returns, rather than to beat a market benchmark.

Overview

A different objective than beating the market.

Absolute Return & Alternatives is built around a different objective from most of our other services: rather than seeking to outperform a public-market benchmark, it aims to generate consistent returns that are largely independent of broad market direction.

To do this, it uses techniques such as long/short positioning — holding both bullish and bearish positions at once — and relative-value trades that seek to profit from pricing differences between related instruments, rather than from the overall direction of markets.

The result is a return stream intended to behave differently from traditional equity and bond exposure, offering investors a way to diversify against the market cycles that drive most conventional portfolios.

01

Market-Neutral Positioning

Exposure structured to reduce reliance on the overall direction of equity or bond markets for its return.

02

Long/Short & Relative Value

Combines long and short positions with relative-value trades that seek to profit from pricing relationships, not direction.

03

Benchmark-Independent Objective

Success is measured against consistency and risk-adjusted return, not against a public-market benchmark.

Who This Is For

Suited to investors who want a genuine diversifier, not another market bet.

Absolute Return & Alternatives typically suits investors and institutions in the following positions.

Cycle Diversifiers

Investors seeking diversification against the market cycles that drive traditional equity and bond portfolios.

Consistency-Focused Investors

Investors who prioritise consistency of return over benchmark-relative performance.

Risk-Defined Allocators

Institutional and qualified investors with a defined risk tolerance for alternative approaches, looking to complement rather than replace a core market-directional portfolio.

Getting Started

From risk budget to ongoing monitoring.

A structured process for building and maintaining a market-neutral allocation.

  1. Scope & Risk Budget

    Target volatility and correlation objectives are agreed and documented before any capital is allocated.

  2. Approach Selection

    Capital is allocated across long/short and relative-value approaches selected to meet the agreed risk budget.

  3. Implementation

    Positions are established and actively managed under the agreed risk framework.

  4. Ongoing Risk Monitoring

    Correlation, drawdown and performance are monitored on a standing basis against the agreed objectives.

Get in Touch

Ready to discuss an absolute return allocation?

Speak with our team about fit, eligibility and reporting before committing any capital.