The chart shows the correlation between the returns of the MSCI World All Country Index and the Man-AHL fund that I've been discussing recently over the twelve months to the dates given. As you can see the correlation tends to be positive in bull markets and low or negative in bear markets. The latter include the 1998 crisis, the 2000-2002 bear market and the current bear market. This of course makes this fund the ideal diversifier for an equity portfolio - reducing downside risk while not sigificantly limiting upside potential.
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