Diversification, as we all know, is one of the pillars of investing. The more diversified a portfolio is, the more are the chances of it performing better than others. One of the most popular types of diversification is the use of multistrategy. This approach involves the use of many uncorrelated investment strategies to optimize the portfolio performance irrespective of the market movement. One best way of benefiting from this strategy is to invest via multistrategy mutual funds. Let’s take a look at the ten top multistrategy mutual funds.
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Ten Top Multistrategy Mutual Funds
We have referred to the past one-year return data (from U.S. News) to rank the ten top multistrategy mutual funds. Following are the ten top multistrategy mutual funds:
QSPIX uses four investment styles: defensive, value, momentum and carry. Moreover, it uses both "long" and "short" positions for all assets it invests in, including interest rates, commodities, currencies, equities, and bonds. It has given a return of over 1% in the past three months and has more than $750 million in total assets. Its top two holdings are: 10 Year Japanese Government Bond Future June 21 and Euro Bund Future June 21.
TFAEX may invest in options, index ETFs, domestic and foreign equities, and investment grade fixed income securities. It has given a return of over 3% in the past three months and has more than $62 million in total assets. Its top three holdings are: Vanguard Short-Term Corporate Bond ETF (VCSH), iShares 1-5 Year invmt Grd Corp Bd ETF (IGSB) and PGIM Ultra Short Bond ETF (PULS).
JAAMX uses a combination of different investment strategies that are managed by different sub-advisers, as well as by the Adviser. It has given a return of over 1% in the past three months and has more than $13 million in total assets. Its top three holdings are: iShares Russell 2000 Growth ETF (IWO), James Alpha Bbh Sweep and iShares Russell 2000 ETF (IWM).
JTHIX aims to hit its investment objective by outperforming the returns from a variety of investment strategies offered by private funds, such as hedged equity, event driven, macro, and relative value strategies. It has given a return of over 1% in the past three months and has more than $38 million in total assets. Its top two holdings are: Recv Db Swap 3305 and Recv Spw Index Swap A.
RMRGX allocates its assets among investment sub-advisers, other funds that use alternative or hedging strategies, and derivatives. It has given a return of over 3% in the past three months and more than 5% in the past three years. RMRGX has more than $200 million in total assets. Its top three holdings are: Melchior Segregated Portfolio, Wabr and Vanguard S&P 500 ETF (VOO).
CCMNX primarily uses strategies that exploit disparities or inefficiencies in the markets. It has given a return of over 1% in the past three months and more than 1% in the past three years. CCMNX has more than $23 million in total assets. Its top three holdings are: Federal Home Loan Mortgage Corporation 6.51%, Enviva Partners LP and 10 Year Treasury Note Future Sept 21.
SYMAX deploys two complementary strategies (Alternative Component Strategy and Traditional Component Strategy) to achieve its investment objective. It has given a return of almost 1% in the past three months and has more than $39 million in total assets. Its top three holdings are: United States Treasury Bills 0%, Acssf Fund Ltd and iShares 1-3 Year Treasury Bond ETF (SHY).
MAFIX invests its assets using a "Long U.S. Equity" strategy, a "Fixed Income" strategy and a "Managed Futures" strategy. It has given a return of almost -1% in the past three months and more than 16% in the past three years. MAFIX has more than $91 million in total assets. Its top two holdings are: E-mini S&P 500 Future Sept 21 and United States Treasury Bills 0%.
KCMTX could invest in global companies of all sizes and in all sectors, as well as in equities, derivatives, cash and fixed income instruments. It has given a return of over 5% in the past three months and more than 9% in the past three years. KCMTX has more than $19 million in total assets. Its top three holdings are: Fidelity® Inv MM Fds Government (IFIGXX), Energy Select Sector SPDR® ETF (XLE) and US Global Jets ETF (JETS).
ATRAX aims to offer a return that is more than the return of the BNP Paribas Catalyst Systematic Alpha Index. This fund invests in securities that offer exposure to the Benchmark index. It has given a return of over 10% in the past three months and more than 16% in the past three years. ATRAX has more than $3.3 million in total assets. Its top three holdings are: Csacs Fund Limited, Microstrategy Incorporated 0% and Catalyst Enhanced Income Strategy I (EIXIX).
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