Garnaut Absolute Return Theme (GART)
GART is a portfolio of highly skilled investment managers across all asset classes. GART focuses on producing long term absolute returns through all market cycles. As a result, the portfolio has a greater allocation to absolute return and hedging strategies when compared to traditional asset allocations. Similar investment strategies have been successfully adopted by US University Endowment Funds (Harvard, Yale etc) and global Sovereign Wealth Funds (Future Fund, Abu Dhabi Investment Authority.
The final portfolio is a mix of academic theory and informed market judgement which focuses on generating the best possible return, whilst maintaining a strict focus on capital preservation and low volatility. The optimal portfolio undergoes rigorous quantitative analysis and testing via our proprietary software to ensure that these objectives are satisfied.
A number of GART investment managers employ flexible mandates allowing them to go long (profit when markets go up), short (profit when markets fall) or convert to cash if required. In rising markets, they exhibit all the attributes of a normal Fund, whilst during periods of uncertainly, they can become more defensive by employing short selling or converting to cash on your behalf to preserve capital.Funds that can take similar positions in currencies, global bonds and other assets are also important. These positions typically have a low correlation to equities and assist in diversifying portfolios, with the benefit of significantly higher than cash returns, with lower relative volatility.