Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Sturgeon’s Law states, “90% of everything is crap.”¹ I have taken it upon myself to craft “Sturgeon’s Corollary,” which states the following: “90% of all investment products are crap.” https://ritholtz.com/2025/12/sturgeons-corollary
¹ See Effectiviology, which notes that Sturgeon formalized it further in the March 1958 issue of Venture, calling it “Sturgeon’s Revelation.”
Amusing. Hard to argue here. But his "long term" time-horizon (as to what works) appears to be only 5-10 years. Who's he kidding there? The term alternative is pretty broad. Generally used to describe gimmicky funds. TMSRX had a favorable start but quickly faded. And BAMBX looked like a sure winner at one time. Great write up by LB in Barron's perhaps 8-10 years ago. A dog lately.
What is left unsaid is people look to alternatives as insurance against steep short-term losses (ie -50% on the S&P). And insurance is always a losing proposition - unless and until you need it. I like L/S funds for risk-averse investors. Don't know if they are considered alternative funds or not. It's a name game
"MFO’s founding mission is to 'write for the benefit of intellectually curious, serious investors— managers, advisers, and individuals—who need to go beyond marketing fluff, beyond computer-generated recommendations and beyond Morningstar’s coverage universe.' But one of our core precepts is '80% of all existing funds could disappear today with no loss to anyone, except possibly the managers who have to explain it to their spouses.'”
Prof. Snowball includes a list of "rookie" funds that may be worth considering.
Comments
What is left unsaid is people look to alternatives as insurance against steep short-term losses (ie -50% on the S&P). And insurance is always a losing proposition - unless and until you need it. I like L/S funds for risk-averse investors. Don't know if they are considered alternative funds or not. It's a name game
"MFO’s founding mission is to 'write for the benefit of intellectually curious, serious investors—
managers, advisers, and individuals—who need to go beyond marketing fluff,
beyond computer-generated recommendations and beyond Morningstar’s coverage universe.'
But one of our core precepts is '80% of all existing funds could disappear today with no loss to anyone,
except possibly the managers who have to explain it to their spouses.'”
Prof. Snowball includes a list of "rookie" funds that may be worth considering.
https://www.mutualfundobserver.com/2025/12/the-kids-are-alright/