How does MA focus on reducing downside risk?
• Absolute Returns: MA targetsabsolute[1]returns, that is it aims to be profitable every year. Strategies employed in absolute return portfolios aim to produce returns independent of market performance benchmarks or indices such as the Straits Times Index. • Structure of MA Reduces Downside Risk: Because of the focus on absolute returns, the MA portfolio is designed with an appropriate structure to reduce downside risk in bear markets. Unlike conventional equity funds, the investment manager is allowed to hold a substantial amount of cash, and even engage in short selling.
