The first generation of liquid alternatives languished—and they were pricey to boot. But that may be changing in a post-Covid market. Here’s what you need to know.

It was a very strange quarter. Perhaps that shouldn’t have come as a surprise, given the year that had preceded it.

The value-stock rebound has helped many fund managers repair their battered track record of recent years, but the rally is likely to look different as the year goes on.

Chris Davis, of Davis Advisors, is more convinced than ever that the sector is poised to shine, notwithstanding the emergence of newly disruptive technologies.

After growth’s long ascendancy, value shares are getting their day in the sun. To determine which have the best prospects, check for factors including liquidity, quality, size, and momentum.

In challenging markets, these nontraditional funds can react tactically and dial down duration. They might even buy a few stocks. Investors, however, should know the risks that unconstrained managers take....