Absolute return is a method used to describe the return of funds, especially hedge funds. Refers to the benefits that are simply realized. In the valuation of hedge funds, investors pay attention to the absolute return of fund managers rather than the relative return. Funds with absolute returns often use non-traditional assets such as short selling, futures, options, derivatives, arbitrage and leverage to obtain income.

Relative return is the difference between absolute return and some benchmark return. Used to describe the extra rewards people get by taking extra risks. This method is usually used to measure the return of mutual funds.

Second, relative income.

Relative return is the difference between absolute return and some benchmark return. Used to describe the extra rewards people get by taking extra risks. This method is usually used to measure the return of mutual funds. Absolute income must be positive, must make money, can not lose money; Relative income is comparison, and Public Offering of Fund uses relative income to decide the ranking.

Third, supplement

1, Public Offering of Fund has a lot of funds to manage, so it is not easy to operate flexibly, and there are restrictions on Public Offering of Fund in policy, so it is difficult for Public Offering of Fund to accurately escape from the top and bargain-hunting, and it is difficult to obtain absolute income, which can only be measured by relative income.

2. For public offering, public offering pays attention to relative income. Because Public Offering of Fund manages a lot of funds, it is not easy to operate flexibly, and because of policy restrictions, it is difficult for public offerings to accurately escape from the top and copy low, so it is difficult to obtain absolute returns, and only relative returns can be used to measure performance; For private placement, private placement pays attention to absolute income, and the maximum withdrawal is the lifeline of the product and even the company, because it represents the biggest loss that may occur after buying the fund.

Extended data:

Public offering is a way of international bond issuance. First of all, the borrower contacts with major international banks or securities companies, initially determines the conditions for issuing bonds, selects the lead bank, and then forms a banking group or securities company to sell to investors. Bonds can be circulated and traded in the open market. When issuing bonds, borrowers must provide information about themselves.

The difference between public offering and private offering is not obvious in Europe, just for convenience, but in the United States and Japan, the difference is extremely strict. At the time of public offering, registration must be submitted to the Securities and Exchange Commission in accordance with the provisions of 1933 in the United States, and securities declaration must be submitted in accordance with the Securities and Exchange Law in Japan. After the issuance of bonds, in order to provide information about securities to ordinary investors and protect their interests, it is necessary to submit securities reports every statistical year.

References:

Relative income Baidu Encyclopedia absolute income Baidu Encyclopedia