Managed futures and multi-strategy mutual funds have soared in popularity over the past few years as investors search for strategies designed to provide reliable portfolio diversification and attractive returns. In total, investors poured $37 billion into these funds from December 2014 through May 2016 alone, according to Morningstar.

However, investors considering these categories would be wise to take a close look at how specific funds have performed. The past three years show a significant variation in style across managers. While some delivered attractive returns, only a subset delivered when it counted most – during sharp sell-offs in equity markets.

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The Author

Justin Blesy

Asset Allocation Strategist

Ashish Tiwari

Product Strategy, Asia-Pacific and Hedge Funds

Chris Santore

Quantitative Strategies



Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. Alternative investment strategies are often subject to greater risk than traditional investments. Derivatives may involve certain costs and risks, such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Management risk is the risk that the investment techniques and risk analyses applied by the manager will not produce the desired results, and that certain policies or developments may affect the investment techniques available to the manager in connection with managing the strategy. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision.

This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2016, PIMCO.