“…the Absolute Strategies Fund performed well in an environment that has almost solely rewarded passive, beta investing. Even with difficult headwinds for what we do, the Fund continues to exhibit impressive drawdown performance in every down market over the last six years, while delivering overall positive returns that are driven by solid alpha and negative beta. The Fund’s exposures and allocations have been much more active and flexible during volatile periods, including monetizing certain short positions while selectively adding opportunistic long exposure….
…Exuberance and risk appetite indicators are at extreme levels and there have been massive flows into passive investments since the election. We are skeptical. If the lack of earnings growth weren’t enough, there is once again an historic gap between valuations and fundamentals.” [read all]