Until recently Optimix, which follows a top-down investment process, had been reluctant to invest in absolute return because “we wanted to keep it simple,” says Bouma.
“Until a year ago, our portfolios were quite simple: just equities and bonds. But at current yield levels we need to have alternatives,” explains Bouma. “So we went on to search for low-beta alternatives with low correlation to equities.”
However, Bouma admits that the main reason Optimix made a move into absolute return is that it felt forced to because of the lack of perspective in fixed income on the short and medium term.
But the admits: “We are ready to return to bonds when yields go up. But I expect it will take a few years before we get to that point.”
In part two of the interview, Bouma tells which long/short funds he has bought into so far. He also reveals why liquidity is so important to him.
