Morgan Stanley Gives Small Institutions Access to Hedge Funds

June 9, 2006 ( - Morgan Stanley Investment Management now offers a fund of hedge funds open to smaller institutional clients.

The Alternative Absolute Fund offers an institutional-quality portfolio of hedge funds to smaller institutional clients, according to a news release. The fund requires a minimum investment of $100,000, and $50,000 for additional purchases.

The fund is led by Mustafa Jama, Head and Chief Investment Officer of liquid markets of Morgan Stanley Alternative Investment Partners.

Employing an “absolute return strategy,” the fund seeks to achieve attractive risk-adjusted returns over the broad range of market environments. In addition, the fund of hedge funds structure may potentially lower portfolio risk by diversifying across a broad number of funds and strategies, the company said in the news release.

“The Absolute Return Fund is an attractive option for investors who are looking to generate returns that are independent of traditional markets,” said Stuart Bohart, Head of Alternative Investments of Morgan Stanley Investment Management, in a press release.