Skip to Content
Fund Spy

A Red Giant Engulfs the Long-Short Category

But smaller funds with star potential lurk from afar.

Mentioned: , , , , , , , , ,

The long-short equity Morningstar Category has been one of the fastest-growing in the open-end alternatives universe, in terms of both assets and number of funds. In 2013, its organic growth rate was 81%, with nearly $21 billion in net new assets flowing into the category. Moreover, 22 new funds were launched, representing a nearly one-fifth increase in the category's count of distinct strategies, which now number 110 (four more launched in the first quarter of 2014). And growth shows little sign of abating.

What's fueling this growth, and to which funds should investors be paying attention in this quickly evolving area?

Josh Charlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.