An absolute return strategy differs from a market-neutral strategy in that market-neutral aims for zero beta backward-looking, but beta is not predictive forward-looking, so absolute return strategies are better characterized as agnostic to market direction.
causalpending
Speaker
Jacob PizorEvidence Quote
“even when you uh uh build a strategy that has a zero beta um it is zero beta going backwards it's not zero beta going forwards beta isn't necessarily predictive going forwards”
Source
Redefining Value Investing in a Magnificent Seven Dominated World | Jacob Pozharny— Excess ReturnsCreated: 8/11/2026, 7:46:05 AM
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