Albemarle: The seven absolute return funds still worth backing

The tool aims to predict a manager’s ability to deliver alpha in the future by separating a fund’s performance into exposure to index beta, or the cost of capital, and returns above this – alpha. To make it onto the buy list, a fund must have at least a 60% probability of producing alpha over the next 12 months. The selection tool looks at the average annualised alpha and average annualised volatility of a fund manager, followed by an in-depth analysis of the strengths and weaknesses of their investment process. Sam Liddle, partner at the consultancy firm, said: “The Targeted Absol...