Multi-strategy: Investing opportunistically across strategies

Value of an initial $1,000 investment

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The total return of an investment is only one measure of performance. Performance should never be the sole consideration when making an investment decision. There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. The referenced indices are shown for general market comparisons and are not meant to represent any particular Fund. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. US stocks represented by the S&P 500 Total Return Index; Multi-strategy represented by the HFRI Fund Weighted Composite Index. Bull markets: 01/90-08/00, 10/02-09/07, 03/09-present; tech wreck: 09/00-09/02; credit crisis: 10/07-02/09. Source: Altegris.

Multi-strategy funds seek to opportunistically invest across a diverse range of alternative strategies.

Multi-strategy investments vs. traditional asset classes

The charts below show how multi-strategy investments historically stacks up against traditional asset classes.

Calendar Year Performance: Multi-Strategy vs US Stocks

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Multi-strategy represented by the HFRI Fund Weighted Composite Index. See index descriptions below.

Performance Statistics:
Multi-Strategy vs. US Stocks

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Multi-strategy represented by the HFRI Fund Weighted Composite Index. See index descriptions below.

Annualized 10-, 5-, 3- and 1-Year Returns

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Multi-strategy represented by the HFRI Fund Weighted Composite Index. See index descriptions below.

Standard Deviation*

*Standard deviation is a statistical measure of how consistent returns are over time; a lower standard deviation indicates historically less volatility.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Multi-strategy represented by the HFRI Fund Weighted Composite Index. See index descriptions below.

Multi-Strategy Correlation*

*Correlation is a statistical measure of how two securities move in relation to each other.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Multi-strategy represented by the HFRI Fund Weighted Composite Index. See index descriptions below.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The referenced indices are shown for general market comparisons and are not meant to represent any particular Fund. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. US Stocks represented by S&P 500 Total Return Index; US Bonds represented by Barclays Capital US Aggregate Bond Index; International Stocks represented by MSCI EAFE Index; Commodities represented by S&P GSCI Total Return Index; Multi-strategy represented by the HFRI Fund Weighted Composite Index. Source: Altegris.

Multiple strategies, multiple markets

Multi-strategy investments seek strong risk-adjusted returns across market cycles using a range of alternative strategies such as long/short equity, quantitative strategies, fixed income and event-driven. The ability to generate strong-risk adjusted returns may be attributed to:

  • Market opportunity – the ability to shift exposures between strategies
  • Approach – utilize fundamental and quantitative inputs
  • Region – access to various global markets

Opportunistic investing

Multi-strategy can invest both long and short, typically unconstrained by investment style, in multiple asset classes and markets around the world.

Multi-strategy investments have delivered strong historical performance with lower volatility than many traditional strategies. The potential diversification benefits of this strategy can be attributed to its flexible approach that allows investments in various strategies.

  • Strong historical performance: Multi-strategy has delivered an impressive historical total return over the past 20 years. Of course, past performance is not indicative of future results.
  • Lower historical volatility: Multi-strategy investments' historically stronger returns have been delivered with lower volatility compared to traditional strategies.
  • Flexible investment approach: Allows investors to participate in a variety of investment strategies (e.g., long/short equity, event-driven, etc.) managed by expert managers in each strategy.

See the Glossary for term definitions.