Pulsar Absolute (The Fund) is a share class of the Pulsar Fund, managed by CrossBorder Capital (Bermuda) Ltd and advised by CrossBorder Capital Ltd. Its objective is to out-perform the HFRX Equity Hedge Index and/or the MSCI World Index with lower volatility and smaller drawdown. The Fund seeks growth across global equities, focusing on Small/Mid Cap indexes and Emerging Markets, utilizing a quantitative Tactical Asset Allocation model based on liquidity analysis. It replicates traditional Equity Long/Short return/risk profile by using an Alternative Beta Model. The Fund holds long only positions and invests primarily via ETFs and Futures, rebalancing monthly and using cash rather than short positions to actively manage risk. Pulsar Absolute has a strong strategic view of investing in long-term growth markets: Small/Mid Cap Stocks and Emerging Markets. To achieve alpha, the fund concentrates exposure on those markets that are favored by liquidity conditions and has the ability of holding 100% cash during expected bear markets. We analyze the liquidity flows (cash and credit) in the financial system across more than 80 national markets. Liquidity is measured from information and data provided by national central banks and by international institutions, such as the IMF, BIS and UN. Liquidity analysis is used to forecast returns of different assets and to determine a covariance matrix. We utilize mean variance optimization subject to constraints to determine long and short positions. The models are run monthly, following the data collection cycle. The portfolio is rebalanced monthly as well.