Asian long only absolute return managers are generating consistent alpha, according to findings from a new study by GFIA pte, the Singapore-based specialist in skill-based managers in Asian and emerging markets.

The firm reviewed alpha generated by long only absolute funds and found that “such funds generate measurable alpha through a market cycle, and with equivalent or much lower volatility than the market,” according to a statement from GFIA.

Five out of seven long only absolute return strategies generated alpha relative to their benchmark indices at almost equivalent or lower volatility, from January 2001 to February 2011.

This outperformance among Asian long only absolute return managers was mainly achieved by minimising losses during bear markets, however, during bull markets, these funds are likely to underperform said GFIA.

 “Our research confirms what we’ve observed for over a decade: unconstrained long investing in Asia is a winning proposition for investors. Good managers can and do beat the market here, while lowering risk and drawdowns as well,” commented Peter Douglas, principal of GFIA.