As we reflect on the performance of Absolute Return and Hedge Funds over the past five and ten years, and show in the following analysis, "Volatility eats Returns" .
In fact, if 2012 was a year of two halves, so too was the previous decade. For the first five years, from 2003 to 2007, equity investors could do little wrong as they overcame, and then forgot the lessons of the dot-com bubble, just as they had forgotten the previous lessons from LTCM, the Asian Currency Crisis and October 1987 amongst others.
For five years from 2003 to 2007 the ASX200 accumulation index had no problem notching up returns of 20% per annum, supported by easy credit, and lax lending at both corporate and personal levels, and volatility fell accordingly.
Read the entire report from Chris Gosselin, Australian Fund Monitors here.
Attached Files:
AFM's Five and Ten year Performance review to 2012 (pdf format)
