Graphic of The Day: Dispersion of Sharpe Ratios In Alternative Mutual Funds

From AlphaCore Capital

Today’s graphic comes from AlphaCore Capital LLC, a registered Investment Advisor from La Jolla California, and has been put together by Jonathan Belanger, CFA, the Director of Research. It was intended to show that using average returns is not an appropriate approach to working with alternative investment strategies.

Dispersion of Sharpe Ratios In Alternative Strategy Mutual Funds

Alphacore dispersion of sharpe ratios

The graphic shows Sharpe ratios for alternative strategy mutual funds for 2015 in Morningstar categories. The categories are Market Neutral, Multi-alteranative, Long/Short Equity, Non-traditional Bond, and Managed Futures. For reference and benchmarking the Morningstar category Large Blend is included to typify large-cap equity dispersion.

AlphaCore Capital LLC can be reached via: www.alphacorecap.com