Platform Guide

Alternative to Morningstar for Hedge Fund Research

Morningstar is the reference point for mutual fund and ETF research. Many allocators add a specialist platform alongside it for their hedge fund research. This page explains what that platform needs to do and where AlternativeSoft fits.

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This page covers:What hedge fund research requiresWhat AlternativeSoft addsUsing both togetherA research workflow
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In short
AlternativeSoft is a specialist platform for hedge fund research that many institutions use alongside Morningstar. It adds hedge fund peer group analysis, style and factor analysis, portfolio construction and AI-assisted due diligence, and it connects to Morningstar data via API so traditional and alternative funds can be analysed together.

What Hedge Fund Research Requires

Researching hedge funds raises questions that do not come up with regulated retail funds.

  • Returns are not normally distributed: Skew, fat tails and drawdowns matter more than volatility alone, so extreme risk measures are needed.
  • Reporting is voluntary: No single database holds every fund, so a complete universe means combining several sources.
  • Strategy labels are loose: Two funds in the same category can run very different books, which makes custom peer groups essential.
  • Transparency is limited: Operational due diligence carries far more weight than it does for a regulated retail fund.
  • Liquidity terms vary: Lock-ups, gates and notice periods affect how a fund fits in a portfolio.

What AlternativeSoft Adds for Hedge Fund Research

Peer Group Analysis
Purpose-built for hedge funds, with 500,000+ funds and 4,000+ statistics
Style and Factor Analysis
Factor exposures calculated to separate manager skill from market beta
Extreme Risk
Drawdown analysis, modified VaR, CVaR and stress testing
Portfolio Construction
Mean-variance optimisation, risk parity, constraint modelling and stress tests
Due Diligence
AI-assisted DDQ completion that reduces completion time by up to 90%
Private Equity
IRR, TVPI, DPI, RVPI, MOIC and PME alongside hedge fund data

Keep Morningstar, Add a Specialist

A common approach: Institutions keep their Morningstar subscription for mutual fund and ETF research and add AlternativeSoft for the hedge fund and alternatives allocation. AlternativeSoft connects to Morningstar data via API, so both sit in one database alongside Bloomberg, eVestment, HFR and Preqin.

Access to Morningstar data inside AlternativeSoft requires your own licence with the data provider. Morningstar is a trademark of its owner, and AlternativeSoft is not affiliated with or endorsed by Morningstar. Vendor capabilities and pricing change frequently. Confirm current features directly with each provider before making a decision.

A Hedge Fund Research Workflow, Step by Step

  1. Screen: Filter the universe by strategy, assets, track record and any of 4,000+ statistics.
  2. Benchmark: Rank each candidate against a peer group you define, not only a broad category.
  3. Decompose: Run style analysis to see which factors explain the returns and how much alpha remains.
  4. Test the fit: Add the fund to your portfolio and measure the effect on risk, drawdown and diversification.
  5. Diligence: Complete operational due diligence with AI drafting questionnaire responses from the fund's documents.
  6. Report: Generate the committee paper and fact sheet from the same data.

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Client Testimonials

Trusted by 150+ Leading Institutions

“

AlternativeSoft streamlines many useful performance-based analytics including portfolio optimisation, peer evaluation, and relative analyses. An intuitive platform that is additive to our processes.

Aberdeen Asset Management
Head of Risk Management
★★★★★
“

A practical and user-friendly tool used as part of our portfolio construction and risk management process. Their extensive support and responsiveness provides real added value.

AllianceBernstein
Co-head, Risk Management & Portfolio Construction
★★★★★
“

From statistical analysis on a single hedge fund to portfolio construction, risk analysis and stress testing - one of the most effective and intuitive tools I have handled.

BNP Paribas
Hedge Fund Solutions
★★★★★
Best Risk Management Software
Hedgeweek - 4 Consecutive Years
Best Portfolio Analytics Platform
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Recognised since 2005
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FAQ

Frequently Asked Questions

For hedge fund and alternatives research, AlternativeSoft provides specialist analytics. For mutual fund and ETF research, many institutions keep Morningstar and use the two together. AlternativeSoft connects to Morningstar data via API.
Yes. AlternativeSoft connects to Morningstar data via API alongside Bloomberg, eVestment, HFR, Preqin and other providers. You need your own licence with each data provider.
AlternativeSoft calculates more than 4,000 statistics, including Sharpe, Sortino and Omega ratios, drawdown measures, modified VaR, CVaR, alpha and beta, and factor exposures from style analysis.
Hedge fund strategy categories are broad, and funds within one category can differ widely. A custom peer group lets you compare a manager with the funds your committee considers true competitors.
Yes. AlternativeSoft includes private equity analytics such as IRR, TVPI, DPI, RVPI and PME, so private market funds can be analysed alongside hedge funds.
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See AlternativeSoft
in Action

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  • Live walkthrough of the full platform
  • Tailored to your asset class - hedge funds, mutual funds or private markets
  • Q&A with our investment analytics specialists
  • Free trial access available following the demo
  • Dedicated onboarding and implementation support
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Data integrations include:
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