Zenith Investment Partners has started coverage of ARCO Investment Management’s Absolute Return Fund and has awarded it a ‘recommended’ rating.
The fund, which has been managed by ARCO since 2008, aims to provide investors with returns through its fundamental approach to stock picking, coupled with an overarching focus on preserving their capital through the market cycle.
Zenith praised the fund’s highly experienced investment team and the conservative nature of the fund, which was a “unique Australian equity market neutral offering”.
ARCO co-founder and co-portfolio manager, George Colman, said the strategy was started two hours after Lehman Brothers had triggered the Global Financial Crisis in 2008 by filing for bankruptcy, allowing the fund to gain “real-world experience in protecting and growing investors wealth during both normal and completely abnormal market conditions.”
“We believe that our absolute return approach to Australian equities is an absolutely sensible part of any investor’s portfolio throughout any market cycle,” he said.
“We say this because our objective is to consistently deliver returns to our investors in absolute positive terms, not relative to a market benchmark, which can be both volatile and negative at times.”