RT Journal Article
SR Electronic
T1 Do Absolute-Return Mutual Funds Have Absolute Returns?
JF The Journal of Investing
FD Institutional Investor Journals
SP 23
OP 40
DO 10.3905/joi.2013.22.4.023
VO 22
IS 4
A1 Christopher Clifford
A1 Bradford Jordan
A1 Timothy Brandon Riley
YR 2013
UL https://pm-research.com/content/22/4/23.abstract
AB The authors study the universe of absolute-return mutual funds and find no evidence that they deliver positive alpha. Additionally, these funds can have significant factor exposures. Compared with ordinary equity funds, absolute-return funds have much higher fees and turnover. They perform worse than their hedge fund counterparts. Overall, the results indicate that investors seeking absolute returns using mutual funds are likely to be disappointed.TOPICS: Mutual fund performance, analysis of individual factors/risk premia, performance measurement