Portfolio Manager Luke Newman considers how the market for absolute return has changed in response to the spread of COVID-19, outlining his reasons to position for an economic recovery, while still focusing on capital preservation.

  Key Takeaways:

  • In what has been a truly challenging year for investment markets, there have been several
    key identifiable phases when it comes to absolute return investment: capital preservation;
    debt issuance; and positioning for a recovery.
  • Experience, even at arm’s length, of previous pandemics, has provided precious insight into
    the potential shape of lockdowns, and the difficult political decisions made, as the virus
    spread across the world.
  • The future is not a straight or clear path, either in investment terms or in our personal lives.
    In this environment, a cautious attitude seems sensible, while also keeping funds in reserve
    to take advantage of longer-term opportunities, as and when they appear.