Morgan Stanley’s alternative investment arm is launching a fund-of-funds specializing in global long/short equity strategies, according to HedgeWorld.com. The fund will be offered to qualified investors at $1,000 per share, with the initial closing date some time in 2008, according to a preliminary prospectus.
Four portfolio managers, Jose Gonalez-Heres, Paresh Bhatt, Kevin Kuntz and Mark van der Zwan, are responsible for the day to day operations, as well as chief investment officer Mustafa Jama.
The institutional fund has almost $3 billion in assets as of March, and is the second-largest registered fund of its kind after GM Asset Management’s Absolute Return Strategy fund. Morgan Stanley has offered diversified funds of hedge funds for several years, which are popular with institutions.
The target group for the new fund appears to be the U.S. mass-affluent market. The minimum initial investment is $100,000, and additional investments have a $50,000 minimum.
Global Long/Short will provide access to managers whose services are not generally available to the investing public or who put stringent restrictions on the number and type of their investors, according to its prospectus
Investing though multiple managers usually reduces the volatility of returns compared to single-fund investments in long and short equity strategies.
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