1.4bn absolute return fund: The market has been this polarised only twice before

James Clunie says one of his best picks has been Kraft Heinz, whose shares have collapsed recently

Absolute return funds are supposed to be a hedge for investors: they should be relatively immune from the ups and downs of the wider market. But recent strong gains in share prices have actually harmed the performance of the Jupiter Absolute Return fund.

The 1.4bn fund aims to make a positive return for investors over any three-year period but, while it has done that for many years, its particular style of investing has seen it fall behind this target recently as the stock market has risen.

Over the past three years it has lost 2.5pc and the past 12 months have proved particularly difficult, with a 6.1pc fall. Despite this, the fund remains on ourDefensive 10 list of fundsfor cautious investors….

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