I believe that there are some on this board who are quite fond of TMSRX, T Rowe Price's Multi Strategy Total Return Fund
The fund receives 4 Stars From Morningstar, and - as referenced in link above - uses a highly flexible investment approach in an effort to provide strong risk-adjusted returns
. This fund - classified by Morningstar as a "Multialternative" fund - bears a net expense ratio
One can, however, construct something similar using T Rowe Price Funds, that would seem to also deserve consideration. This roll-your-own ("RYO") alternative alternative, so to speak, is not as expensive as TMSRX, and this apparent cost-saving may be the source of the RYO advantage.
Below is a link to the RYO at PortfolioVisualizer. The link compares TMSRX to a combination of two TRP funds:
1. T. Rowe Price QM U.S. Bond Index Fund
, with an ER of 25 bps; and
2. T. Rowe Price Global Allocation Fund
, with an ER of 95 bps.PV1: Portfolio Visualizer Regressionhttps://tinyurl.com/tmsrx-alt-fit
If we combine these two funds using a 70/30 allocation that was suggested by the PV tool, then you get a two-fund combo, with a 46 bps weighted average expense ratio - 76 bps below the ER of TMSRX. More details are at the link below.PV2: Portfolio Visualizer RYO Backtesthttps://tinyurl.com/tmsrx-synth-ryo
The synthetic RYO alternative possessed better Sharpe and Sortino ratios than TMSRX, better 'Worst Year', better 'Best Year', a lower standard deviation, etc. The compound average growth rate of the RYO exceeds that of TMSRX by 61 bps, just as the regression alpha of the RYO exceeded that of TMSRX by about 75 bps - see PV1.
By construction, the RYO alternative uses funds drawn from the T Rowe stable. If you're looking for the special insight or advantage
conferred by T Rowe Price's deep bench, then have at it.
I just wonder if you need to spend 122 bps a year for the privilege.
 03-14-21 Thank you to Crash, et al., for their post on RPGAX
, which got me thinking about RPGAX and TMSRX.
 03-16-21 FWIW, TMSRX 'Asset Class' correlations
, via PV.
 03-16-21 And here is link to synthetic versions, constructed from a handful of asset classes