Generated by Rank Math SEO, this is an llms.txt file designed to help LLMs better understand and index this website.

# Sandbox

## Sitemaps
[XML Sitemap](https://locorrfunds.com/sitemap_index.xml): Includes all crawlable and indexable pages.

## Pages
- [Hedged Core Fund](https://locorrfunds.com/investment-solutions/mutual-funds/hedged-core-fund/)
- [Business Continuity Plan](https://locorrfunds.com/business-continuity-plan/)
- [Thank You](https://locorrfunds.com/thank-you/)
- [Chart Library](https://locorrfunds.com/chart-library/)
- [Terms of Use](https://locorrfunds.com/terms-of-use/)
- [Careers at LoCorr](https://locorrfunds.com/why-locorr/careers/)
- [Disclosures](https://locorrfunds.com/disclosures/)
- [Advisor Access](https://locorrfunds.com/advisor-access/)
- [Why LoCorr](https://locorrfunds.com/why-locorr/)
- [Blended Solutions](https://locorrfunds.com/investment-solutions/blended-solutions/)
- [Contact Us](https://locorrfunds.com/contact-us/): Contact Us FacebookThis field is for validation purposes and should be left unchanged.Name(Required) First Last Firm(Required)Email(Required) Message(Required)CAPTCHA Submit
- [Dynamic Opportunity Fund](https://locorrfunds.com/investment-solutions/mutual-funds/dynamic-opportunity-fund/)
- [Education Center](https://locorrfunds.com/insights-education/education-center/)
- [Executive Team](https://locorrfunds.com/why-locorr/executive-team/)
- [Hedged Core Sleeve](https://locorrfunds.com/investment-solutions/blended-solutions/hedged-core-sleeve/)
- [Hedged Growth Sleeve](https://locorrfunds.com/investment-solutions/blended-solutions/hedged-growth-sleeve/)
- [Hedged Income Sleeve](https://locorrfunds.com/investment-solutions/blended-solutions/hedged-income-sleeve/)
- [Home](https://locorrfunds.com/): This is an example page. It's different from a blog post because it will stay in one place and will show up in your site navigation (in most themes). Most people start with an About page that introduces them to potential site visitors. It might say something like this:
- [Chart Library](https://locorrfunds.com/insights-education/charts/)
- [Insights](https://locorrfunds.com/insights-education/insights/)
- [Insights & Education](https://locorrfunds.com/insights-education/)
- [Our Research Process](https://locorrfunds.com/why-locorr/investment-philosophy/)
- [Investment Solutions](https://locorrfunds.com/investment-solutions/)
- [Literature](https://locorrfunds.com/literature/)
- [Long/Short Commodities Strategy Fund](https://locorrfunds.com/investment-solutions/mutual-funds/long-short-commodities-strategy-fund/)
- [Macro Strategies Fund](https://locorrfunds.com/investment-solutions/mutual-funds/macro-strategies-fund/)
- [Market Trend Fund](https://locorrfunds.com/investment-solutions/mutual-funds/market-trend-fund/)
- [Press Releases](https://locorrfunds.com/why-locorr/news/)
- [Mutual Funds](https://locorrfunds.com/investment-solutions/mutual-funds/)
- [Spectrum Income Fund](https://locorrfunds.com/investment-solutions/mutual-funds/spectrum-income-fund/)

## Chart
- [Correlation Regimes Have Fluctuated Over the Years, Leaving Portfolios Vulnerable](https://locorrfunds.com/chart/correlation-regimes-have-fluctuated-over-the-years-leaving-portfolios-vulnerable/): When stocks and bonds exhibit positive correlation, the potential diversification benefit of bonds is diminished...View Chart >
- [Positive Correlations Between Stocks and Bonds During Various Inflationary Ranges](https://locorrfunds.com/chart/positive-correlations-between-stocks-and-bonds-during-various-inflationary-ranges/): In the 2-4% inflation zone, stocks and bonds had a positive correlation coefficient 62% of the time, posing a risk for the diversification goals of a 60/40 portfolio...Download Chart >
- [Is a 40% Allocation to Bonds Still Justified?](https://locorrfunds.com/chart/is-a-40-allocation-to-bonds-still-justified/): An asset allocation of 60% stocks and 40% bonds has been the portfolio standard for decades. However, as you can see in the chart below, the “40” component of that model has provided meager returns over the last couple of decades.
- [Rebuild the 60/40 with Low-Correlating Strategies](https://locorrfunds.com/chart/rebuild-the-60-40-with-low-correlating-solutions/): Given the wide range of economic uncertainties, including existing pressure on growth and inflation, investors should consider a more diversified asset allocation than 60/40. As shown in the chart below, a 60/20/20* portfolio has historically outperformed a 60/40 portfolio over the last four decades, while frequently providing higher risk-adjusted returns (as measured by Sharpe Ratio).
- [The Role of Fixed Income as a Diversifier has Changed](https://locorrfunds.com/chart/the-role-of-fixed-income-as-a-diversifier-has-changed/): Historically, when equity markets experienced a drawdown of -3% or greater, fixed income moved in a different (positive) direction. In the post-COVID market environment, however, fixed income has begun to move in tandem with equities, diminishing the diversification benefit it provides.
- [How to Diversify Equities](https://locorrfunds.com/chart/how-to-diversify-equities/): A portfolio of equities can be diversified by adding strategies with low correlation between the assets. Recently, stock and bond correlation has become significantly positive (i.e., moving together) mitigating the diversification benefit once offered by bonds. To address this, low-correlating assets can be added to the portfolio. As shown below, a 50/50 portfolio split between equities and low-correlating strategies, grew a hypothetical $1M investment to approximately $65M, far outperforming the portfolio that used bonds for “diversification”.
- [Comparative Performance of Asset Classes](https://locorrfunds.com/chart/comparative-performance-of-asset-classes/): Historically, the relative performance of various asset classes has shifted from year to year. Systematic Macro returns historically had very low correlation to the returns of the other asset classes during this time period...View Chart >
- [A Low-Correlating Sleeve May Enhance Portfolio Performance](https://locorrfunds.com/chart/low-correlating-strategies-may-enhance-portfolio-performance/): Modernizing the traditional 60/40 portfolio to a 60/20/20 portfolio by including a sleeve of low-correlating strategies may provide the opportunity to generate positive returns, while also potentially reducing drawdowns...View Chart >
- [Think Outside the (Style) Box for Diversification](https://locorrfunds.com/chart/think-outside-the-style-box-for-diversification/): The style box has historically been an important guide when it comes to diversifying portfolios. However, over the last decade, we have seen a change in the investment landscape...View Chart >
- [Building a Modern Portfolio](https://locorrfunds.com/chart/building-a-modern-portfolio/): For years, most investors have developed two-dimensional portfolios using only stocks and bonds. However, the investment landscape has changed and individual investors now have access to a third dimension of strategies that have been used by institutional investors for decades...View Chart >
- [Systematic Macro Strategies May Offer Increased Diversification](https://locorrfunds.com/chart/systematic-macro-strategies-may-offer-increased-diversification/): !function(e,n,i,s){var d="InfogramEmbeds";var o=e.getElementsByTagName(n);if(window&&window.initialized)window.process&&window.process();else if(!e.getElementById(i)){var r=e.createElement(n);r.async=1,r.id=i,r.src=s,o.parentNode.insertBefore(r,o)}}(document,"script","infogram-async","https://e.infogram.com/js/dist/embed-loader-min.js");
- [Using Low-Correlating Strategies to Improve Risk/Return Characteristics](https://locorrfunds.com/chart/using-low-correlating-strategies-to-improve-risk-return-characteristics/): Stocks and bonds are becoming increasingly correlated making it imperative to find new sources of return that can move independently from both. This means constructing a portfolio that includes equities and a broader set of diversifiers, not just fixed income...View Chart >

## Education
- [What is Systematic Trend?](https://locorrfunds.com/insights-education/education-center/what-is-systematic-trend/)
- [What is Trend Following?](https://locorrfunds.com/insights-education/education-center/what-is-trend-following/): Trend following is an investment strategy based on the technical analysis of changing market prices, rather than on the fundamental strengths or weaknesses of the investments. This strategy believes that prices tend to move upwards or downwards over time. Therefore, trend followers try to take advantage of these “market trends” by observing current trends and deciding whether to buy or sell based on these factors.
- [Looking For Income](https://locorrfunds.com/insights-education/education-center/looking-for-income/): With treasuries, corporate bonds, and bank products yields low, and with the expectation that the Federal Reserve Board will start cutting rates further, the tools investors used in the past to generate income may no longer be effective.
- [The Case for Long/Short Equities](https://locorrfunds.com/insights-education/education-center/case-long-short-equities/): History shows that long/short equity strategies have often outperformed the long-only S&P 500 Index in both bull markets and crisis periods. As shown below, long/short equities have historically achieved better risk-adjusted performance over market cycles than long-only strategies, with significantly lower volatility than long-only equity.
- [The Case for Long/Short Commodities](https://locorrfunds.com/insights-education/education-center/case-long-short-commodities/): Long/short commodity strategies have historically provided strong returns, and their performance has generally not moved in tandem with stocks or bonds. Adding investment strategies such as long/short commodities, which exhibit a low correlation to other asset classes, provides the potential to reduce risk and improve returns in traditional investment portfolios.
- [The Potential Benefits of Managed Futures](https://locorrfunds.com/insights-education/education-center/benefits-managed-futures/): A managed futures strategy is a portfolio of actively traded futures contracts that takes long or short positions based on bullish or bearish signals. These strategies can take advantage of directional trends in many asset classes, including fixed income, currencies, equities and commodities. Managed futures strategies are known for their low correlation to traditional asset classes and therefore have the potential to provide diversification to portfolios.
- [Why Consider Low-Correlating Solutions?](https://locorrfunds.com/insights-education/education-center/why-low-correlating/): 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.

## Insight
- [Why Does Diversification Matter Now More Than Ever?](https://locorrfunds.com/insights-education/insights/diversification-matter-now/): The market for alternative assets has evolved from a once-exclusive niche into a critical pillar of modern portfolio construction. Today's highly valued stock market, relatively low fixed income yields, elevated inflation, and increasing correlation between stocks and bonds have driven demand for new sources of performance and risk management. However, if you are seeking diversification in your portfolio, it is important to understand that not all “alternative investments” are the same and why.
- [FOMO: How to Manage Expectations when it comes to Alternative Investments](https://locorrfunds.com/insights-education/insights/fomo-how-to-manage-expectations/): Risk management rarely feels urgent—until it’s too late. In rising equity markets, investors may resist the more modest returns that may accompany hedging strategies such as fixed income and alternative investments due to a fear of missing out on market gains. This is why managing client expectations is one of the most critical roles a financial advisor plays. The challenge is not just building a well-diversified portfolio—it is helping investors stick with it. This means reframing the conversation—shifting focus from short-term performance to long-term portfolio stability and resilience.
- [Is There a Better Way to Diversify Equity Risk than Fixed Income?](https://locorrfunds.com/insights-education/insights/insanity/): This quote is often associated with Albert Einstein and mystery novelist Rita Mae Brown, addressing the need for change in the face of failure. Many have found the applicability of this quote in life’s challenges, including in their golf game. The expectation to score low and hit every shot without intense practice or dissection of the fundamentals could be considered insane. Is this rational? More often than not, it isn’t. It is often easier to just hope for the best or make surface level changes like buying new golf clubs or simply blaming the density of sand in the bunkers some are frequenting. However, do these quick fixes or blaming really help the golfer's game in the future?
- [The New Rules of Diversification: Correlation Matters](https://locorrfunds.com/insights-education/insights/the-new-rules-of-diversification-correlation-matters/): Markowitz introduced diversification as a means to reduce portfolio risk. His work laid the foundation for Modern Portfolio Theory ("MPT"), demonstrating how spreading investments across various assets with low or even negative correlations can effectively mitigate risk. At its core, diversification seeks to minimize the impact of losses arising from an overreliance on a single asset, providing investors with a buffer against market turbulence. The key to MPT is to identify and incorporate assets exhibiting either low correlation or, even better, negative correlation (i.e., move in opposite directions) to each other. Doing so helps investors achieve a balanced mix of investments that seeks to cushion the portfolio against significant downturns while still providing opportunities for growth and creating an all-weather portfolio.
- [Diversification and Bonds: Your Portfolio’s Hidden Risk](https://locorrfunds.com/insights-education/insights/your-portfolios-hidden-risk/): While advisors may be cautiously optimistic about elevated bond yields, it is crucial to consider the other important reason for investing in bonds beyond return and income, and that is diversification. Bonds have historically played a significant role in diversifying portfolios, which has led to reduced overall volatility, and has been a hedge against equity market fluctuations. In the current landscape, where bonds and stocks are experiencing a period of positive correlation, it becomes even more important (if not critical) to incorporate additional diversification strategies to help mitigate portfolio risk and preserve portfolio balance.
- [Move Over 60/40](https://locorrfunds.com/insights-education/insights/move-over-60-40/): Consisting of 60% stocks and 40% bonds, this classic investment portfolio has historically been a trusted and reliable way to generate returns and diversify investor portfolios. However, we believe the traditional 60/40 allocation may now be working against investors.
- [Is it Too Late to Lower the Risk in My Portfolio?](https://locorrfunds.com/insights-education/insights/is-it-too-late-to-lower-the-risk-in-my-portfolio/): Can I still adjust my allocation to include alternatives in my portfolio or have I missed the boat? We’ve been asked this question a lot lately. Investors and advisors who haven’t yet made an allocation to low- correlating strategies, which have the potential to reduce risk in a portfolio, are questioning if they have waited too long. If you accept the broad concepts of diversification, the answer should be simple.
- [Portfolio Track Record Quiz](https://locorrfunds.com/insights-education/insights/portfolio-track-record-quiz-mf/)
- [Partnering with LoCorr Funds](https://locorrfunds.com/insights-education/insights/partnering-with-locorr-funds/): LoCorr has an exclusive focus on low-correlating solutions designed to move independently from stocks and bonds and help diversify client portfolios...Read More
- [A Strategic Alternative During Market Corrections – LoCorr Market Trend Fund](https://locorrfunds.com/insights-education/insights/a-strategic-alternative-during-market-corrections-locorr-market-trend-fund/): The LoCorr Market Trend Fund (LOTIX) can help provide a diversification solution that addresses investor concerns during market uncertainty....Read More
- [Explore LoCorr’s Sleeves of Low-Correlating Solutions](https://locorrfunds.com/insights-education/insights/explore-locorrs-sleeves-of-low-correlating-solutions/): Portfolio construction should always include a piece of the pie for diversification, or low-correlating strategies. But what happens when you replace that piece with a sleeve of low-correlating strategies?...Read more
- [Building a Modern Portfolio](https://locorrfunds.com/insights-education/insights/building-a-modern-portfolio/): For years, most investors have developed two-dimensional portfolios using only stocks and bonds. However, the investment landscape has changed and individual investors now have access to a third dimension of strategies that have been used by institutional investors for decades...Read More
- [Why You Should Care About Correlation](https://locorrfunds.com/insights-education/insights/care-about-correlation/): If investors view their alternative allocation primarily as a source of growth for their portfolio, then a hedged equity strategy or other fund that has a higher correlation to equities may be an appropriate fit. But many investors seek alternatives for diversification purposes – to have something in the portfolio that moves independently of stocks and bonds. That need is even more important today, as the performance of stocks and bonds (the traditional diversifier within portfolios) both seem inextricably tied to the direction of interest rates.
- [Inflation Risk: Persistent or Transitory is the Wrong Question](https://locorrfunds.com/insights-education/insights/inflation-risk/): Persistent … or transitory? It’s the inflation question that has been weighing on the markets over the last year. As each economic data point trickles out, it is analyzed and re-analyzed, with that focus in mind. But it may be the wrong question to ask.
- [Correlation: What to Watch For](https://locorrfunds.com/insights-education/insights/correlation-what-watch/): When investors or advisors look at alternative investment strategies, correlation is not always the first thing they evaluate. But for those seeking diversification, we believe it should be central to the decision-making process.
- [The Dos and Don’ts when Adding Low-Correlating Strategies](https://locorrfunds.com/insights-education/insights/the-dos-and-donts/): Investors using alternatives for diversification should consider low-correlating strategies that can move independently from stocks and bonds. These strategies have the potential to create a smoother ride and provide a more consistent outcome.
- [Is Your Portfolio Prepared for a Recession?](https://locorrfunds.com/insights-education/insights/is-your-portfolio-prepared-for-a-recession/): Is the U.S. economy now in a recession or are the fears of a recession still just circling? While two consecutive quarters of negative gross domestic product (GDP) usually indicates the economy has entered a recession, the actual decision could come months from now when the National Bureau of Economic Research makes the determination. Of course, considering rising interest rates, raging inflation, and record-high gas prices, recessionary concerns were not unexpected. Despite the uncertainty, one thing seems likely: the next ten years will look different from the previous ten.
- [Is a Bond Allocation Really an Adequate Diversifier?](https://locorrfunds.com/insights-education/insights/bond-allocation-adequate-diversifier/): In traditional portfolio models, fixed income commands a sizable allocation for one reason: diversification. The historically low correlation between stocks and bonds may provide ballast for a portfolio and reduce drawdowns when equity markets decline.

## Team Member
- [Kevin Kinzie](https://locorrfunds.com/team_member/2191/)
- [Jon C. Essen](https://locorrfunds.com/team_member/jon-c-essen/)
- [Sean Katof, CFA®, CAIA®](https://locorrfunds.com/team_member/sean-katof-cfa-caia/)
- [Bob Sarna](https://locorrfunds.com/team_member/bob-sarna/)
- [Brian Hull, CRCP®](https://locorrfunds.com/team_member/brian-hull/)
- [Kris Jaenicke](https://locorrfunds.com/team_member/kris-jaenicke/)
- [Gabriel S. Dutra, Jr., CIMA®](https://locorrfunds.com/team_member/gabriel-s-dutra-jr-cima/)
- [Michael Stabile](https://locorrfunds.com/team_member/michael-stabile/)

## News
- [LoCorr Expands Team Amid Continued Growth](https://locorrfunds.com/about-us/news/locorr-expands-team-amid-continued-growth/): Minneapolis, MN (June 4, 2026) – LoCorr, a leader in low-correlating alternative investments, is pleased to announce new additions to its distribution and research teams as the demand for low-correlating strategies continues to grow.
- [LoCorr Promotes Industry Veterans to Strengthen Distribution Leadership](https://locorrfunds.com/about-us/news/locorr-promotions/): Minneapolis, MN (March 31, 2026) – LoCorr, a leader in low-correlating alternative investments, is pleased to announce the promotions of two industry veterans to distribution leadership roles, while expanding its institutional and wealth management reach.
- [Industry Veteran John A. Norris Joins LoCorr to Support Distribution Efforts](https://locorrfunds.com/about-us/news/locorr-hires-industry-veteran/): Minneapolis, MN (June 10, 2025) – LoCorr Funds, a leader in low-correlating alternative investments, is pleased to announce the hiring of industry veteran John A. Norris to accelerate the distribution of LoCorr investment strategies and solutions through financial intermediaries. With over two decades of experience in private wealth management, Norris brings deep knowledge along with a proven track record of driving growth and fostering strong relationships with partner firms.
- [LoCorr Investment Models Now Available on Private Advisor Group’s  WealthSuite Platform](https://locorrfunds.com/about-us/news/locorr-investment-models-wealthsuite/): Minneapolis, MN (May 6, 2025) – LoCorr Funds, a leader in low-correlating alternative investments, is pleased to announce the development of three alternative investment models for Private Advisor Group’s WealthSuite platform. The models, which went live on May 1, 2025, blend active and passive mutual funds and ETFs from LoCorr and other third-party asset managers to create alternative investment portfolios tailored to three investment objectives—growth, income, and capital preservation.
- [LoCorr Funds Launches Innovative Strategic Allocation Fund](https://locorrfunds.com/about-us/news/locorr-funds-launches-innovative-strategic-allocation-fund/): Minneapolis, MN (January 29, 2025) – LoCorr Funds, a leader in low-correlating alternative investments, is pleased to announce the launch of the LoCorr Strategic Allocation Fund (LSAIX, LSAAX), a daily liquid mutual fund designed to help investors capture equity market upside while mitigating downside losses during periods of market stress. The Fund combines tax-managed equities and multi-manager futures strategies to deliver a tax-efficient solution for navigating today’s volatile markets and to position portfolios for long-term success.
- [LoCorr Funds Expands Distribution Team](https://locorrfunds.com/about-us/news/locorr-funds-expands-distribution-team-1-16-25/): Minneapolis, MN (January 16, 2025) – LoCorr Funds, a leader in low-correlating alternative investments, today announced the expansion of its distribution team with the additions of Ryan Gagnon and Sharad Vasanth. They bring over 25 years of combined experience to LoCorr’s distribution team.