Morgan Stanley Alternative Investment Partners (AIP) today announced the launch of the AIP Dynamic Alternative Strategies Fund, its first mutual fund.

The fund’s objective is to seek long-term capital appreciation with an emphasis on absolute returns. Dynamic portfolio management will be employed in an effort to minimize downside risk and capitalize on potential opportunities.

“AIP has been successfully managing portfolios of non-traditional strategies on behalf of clients for years, and the new AIP Dynamic Alternative Strategies Fund will enable a broader group of investors to pursue the diversification benefits of alternatives,” said Ryan Meredith, co-portfolio manager.

The fund’s investment universe is unaffiliated mutual funds with exposure to non-traditional asset classes with low correlation or betas to traditional equity or bond markets including, but not limited to: REITS, commodities, senior loans, emerging market debt (both domestic currency and dollar denominated), convertible bonds, frontier equities and insurance linked strategies.

The fund will also invest in unaffiliated mutual funds categorized as “alternative mutual funds” which may employ, among others, long/short, arbitrage, global macro and market neutral strategies. A hedge fund replication component will invest directly in securities, derivatives, ETFs and ETNs.

Patrick Reid, co-portfolio manager said, “The structure for the AIP Dynamic Alternative Strategies Fund delivers AIP’s investment selection, portfolio construction and risk management expertise in a vehicle that offers daily liquidity, investment transparency and modest investment minimums.”

Morgan Stanley Alternative Investment Partners (AIP), part of Morgan Stanley Investment Management, specializes in the design, integration and management of alternative investment programs. The group’s investment teams have expertise in fund investing, secondaries and co-investing across private equity, hedge fund, real estate and multi-asset class strategies.

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