Absolute Return Strategy
Absolute return strategies are market agnostic. The general direction of markets does not matter. Positions are taken in a variety of markets that can benefit or be harmed whether markets go up or down.
This strategy is best summed up as having no reliance of market direction and all reliance on manager ability.
Investing in a manager's talent in this way is similar to investing in an entrepreneur's ability to build a business, with a main difference being liquidity. An absolute return strategy in liquid markets, where Reset IM invests, can be exited at any time. Investors don't need to "give it time" to get their investment out. Successful absolute return management will deliver higher returns than other strategies.
Reset IM's founder's career has specialized in this type of investing. It is a very rare and difficult to obtain skill. It requires years of dedicated study and experience to be consistently successful, and few are. This access is an unusual opportunity for individual investors and one element that really sets Reset IM apart.
As stated, these strategies are in liquid products, and are completely transparent.
The goal is to average an investors targeted return, with average annual returns up or down equivalent to that target and a maximum peak-to-trough drawdown of 1 to 2 times that target. So if a client would like to target 15% returns, and Reset IM is successful over time, annual returns will be up or down 15% on average, with an average return also of positive 15%, and at some point in time a drawdown of 15% to as high as 30% could occur. To put that in context the US stock market has averaged about 9% returns with an average move up or down of 19% and maximum drawdowns over 50%, depending on which index is used to represent "the market". (Were Reset IM to perform like that, we would not consider it very good.)