Absolute Return Index

Dictionary Says

Definition of 'Absolute Return Index'

A stock index designed to measure absolute returns. The absolute return index is actually a composite index made up of five other indexes. This index is used to compare the absolute returns posted by the hedge fund market as a whole against individual hedge funds.
Investopedia Says

Investopedia explains 'Absolute Return Index'

The hedge fund absolute return index (HFRX) measures the comprehensive overall returns of hedge funds. Since hedge funds explore unique investment strategies and seek to obtain absolute returns rather than focus on beating the benchmark, the HFRX is representative of all hedge fund strategies.  

Related Definitions

Search results for

'Absolute Return Index'

  • What's the difference between absolute and relative return?

    http://www.investopedia.com/ask/answers/118.asp
    ... the difference between the absolute return and the performance of the market (or
    other similar investments), which is gauged by a benchmark, or index, such as ...
  • Evaluating Bond Funds: Keeping It Simple

    http://www.investopedia.com/articles/mutualfund/05/062805.asp
    ... the exception,not the rule, for bond funds benchmarked against Barclays Capital
    Aggregate Bond Index . Return Unlike stock funds, past absolute performance for ...
  • Bettering Your Portfolio With Alpha And Beta

    http://www.investopedia.com/articles/07/alphabeta.asp
    ... to some sort of market index, that manager would probably opt to have a high level
    of beta exposure. If the manager was aiming for an absolute return, he or ...
  • Hedge Funds Hunt For Upside, Regardless Of The Market

    http://www.investopedia.com/articles/03/112603.asp
    ... charter: investors give hedge funds the freedom to pursue absolute return strategies. ...
    mutual fund's returns are compared to a style-specific index or benchmark ...
  • Hedge Funds Go Retail

    http://www.investopedia.com/articles/mutualfund/07/mutual_fund_retail.asp
    ... 1.43%, and an equity index fund such as the Vanguard 500 Index, which only ... most of
    the underlying hedge funds will still adhere to the absolute return strategy ...
  • Alternative Assets For Average Investors

    http://www.investopedia.com/articles/financial-theory/08/alternative-assets.asp
    ... Low Correlation and Absolute Return Alternative assets come in many varieties, but
    a common ... market (as shown by the Lehman US Aggregate Bond Index) and the ...
  • Warrants: A High-Return Investment Tool

    http://www.investopedia.com/articles/04/021704.asp
    ... the case of an index warrant, an index multiplier would ... Tending to be high-risk,
    high-return investment tools ... price to move in parallel (in absolute terms) the ...
  • CFA Level 1 Study Guide - Global Economic Analysis - Absolute and ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/absolute-relative-purchasing-power-parity.asp
    ... Time-Weighted Return; 2.8 Calculating Yield; 2.9 Statistical ... 4.11 The Consumer Price
    Index & Inflation; 4.12 ... Exchange Rate Systems; 5.18 Absolute and Relative ...
  • Benchmark To Show Winning Returns

    http://www.investopedia.com/articles/financial-theory/08/creating-benchmark.asp
    ... Absolute Benchmark: This is simply a rate of return objective. ... be a minimum required
    rate of return or actuarial return ... be it a domestic stock, bond index, or a ...
  • 5 Inflation-Beating Bond Picks

    http://www.investopedia.com/articles/bonds/09/fixed-income-investing-inflationary-environment.asp
    ... of the bond up or down with changes in the index. ... in Canada they're sold as real
    return bonds (RRBs ... potentially leaving investors with a negative absolute return ...

Related Articles

Trading Center
Partner Links