The stock market’s 10-year run through 2018, which saw the S&P 500 Index crank out a 13% compound annual return, was not kind to most alternative investment strategies.
As detailed by Morningstar analyst John Rekenthaler, at least five categories of liquid alternative funds delivered more pain than protection over the last decade.
His analysis looks at each category’s performance against the S&P 500 during the S&P’s three worst years of the past decade: 2011, when the index gained 2.11%; 2015, when it was up 1.38%; and 2018, when it fell 4.38%.