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Why Consider Low-Correlating Solutions?

Our investment solutions are designed for investment professionals and individual investors who are seeking to achieve better diversification and the potential for reduced risk within their portfolios. Our conviction in telling the low-correlating investment story is a strong driving force for our firm. Even our name, LoCorr, spotlights our focus and belief in the necessity of these strategies for a healthy portfolio.

LoCorr offers a growing family of mutual funds, and distributes numerous alternative investment products to a wide network of investment firms. We continually seek to bring innovative strategies to a broad range of investors to help them navigate the increasingly complex investment environment. Now available in a variety of structures and strategies, they are accessible to all investors – not just institutions or the ultra-wealthy.

Put Low-Correlating Solutions to Use

How do low-correlating solutions help?
They have the potential to:

  • Generate returns differently than traditional stocks and bonds
  • Help provide greater diversification
  • Provide exposure to strategies whose expected returns do not correlate with traditional investments
  • Mitigate downside risk
  • Improve long-term return potential

A Study of Different Low-Correlating Solutions

There are many types of low-correlating strategy solutions, including:

The information that follows on various low-correlating options is summarized, so be sure to consult your financial advisor for more information before investing.

Why are Low-Correlating Solutions Gaining Favor with Universities and Endowments?

Some of the brightest investment minds are employed by large college and university endowments. These institutions historically allocated the vast majority of their portfolios to traditional investments.

As they have sought to reduce risk, grow and preserve capital, and meet their investment objectives, the investment focus of larger endowments ($1 billion and above) has shifted to a greater allocation of low-correlating assets. The pie charts below illustrate how these endowments have changed the way they invest, embracing low-correlating investments while reducing exposure to traditional stocks and bonds.

Endowment allocations in 1999 and 2023

The good news is many of those low-correlating investment solutions are now available to all investors.

 

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