Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a752638

Morgan Stanley in double ‘alpha and alternative’ fund launch

by Robert St George on May 23, 2014 at 11:36

Morgan Stanley in double ‘alpha and alternative’ fund launch

Morgan Stanley has launched two new funds to offer exposure to different types of alternative alpha strategies.

The Liquid Alpha Capture fund will be managed by Ryan Meredith and Janghoon Kim, and will seek to generate absolute returns through strategies derived from hedge funds.

The Morgan Stanley team will analyse a universe of around 22,000 hedge funds and identify a top tier of between 20 and 50. It will then conduct a bottom-up review of the publicly disclosed holdings of these stars in order to develop quantitative processes for capturing their ideas. The managers will also draw on hedge funds’ alternative beta ideas.

The fund’s annual management charge will be 0.75%, and it will only invest in assets liquid enough to enable daily dealing.

Morgan Stanley has also unveiled a Liquid Alternatives fund, which will invest ‘primarily in non-traditional asset classes’ both directly and through other funds.

As examples of the types of asset the fund will buy, Morgan Stanley cited emerging-market debt, high-yield debt, convertible bonds, real estate, commodities, frontier-market equity, insurance-linked strategies, mortgage-backed securities, infrastructure, private equity, and absolute-return funds.

The Liquid Alternatives fund will be managed by Meredith, Kim, Joseph McDonnell and Rui De Figueiredo. Its annual management charge will be 0.60%.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet