FYI: To determine whether an alternative mutual fund will add value to a portfolio, one must look beyond absolute returns. In this article, we present a more-robust approach to evaluating an alternative fund that considers any potential diversification benefits it might confer to a traditional portfolio. Using this framework, we find that most liquid alternative funds have failed to add value to traditional portfolios.
Regards,
Ted
https://www.morningstar.com/articles/878584/liquid-alternatives-have-yet-to-prove-they-belong-.html
