Absolute Returns
Absolute returns refers to attempts to achieve a return on an asset irrespective of the direction of the wider market. This is in contrast with relative returns where the performance of an investment is compared with a market benchmark or index. Absolute return funds aim to make money for investors in both rising and falling markets. They do so by employing a combination of investment strategies including short selling, the use of futures, options, derivatives and arbitrage.
See also: Hedge Fund