Fund Spy

Inside the Morningstar Style Box for Alternatives

Jason Kephart, CFA

We recently introduced the Morningstar Style Box for alternative funds, a new research framework for evaluating liquid alternatives investments that’s available to Morningstar Direct clients at the end of October and will be on the Morningstar website in early 2018.

We first introduced this style box last year in an article that showed how its main components of correlation and volatility can help investors quickly and intuitively gauge a fund's diversification potential. Alternative strategies come in many different varieties, and funds within the same Morningstar Category that pursue very similar strategies can still have very different diversification characteristics.

Jason Kephart, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.