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Morgan Stanley IM’s hedge fund team launches liquid alpha strategy

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Morgan Stanley Investment Management (MSIM) has launched the MS INVF Systematic Liquid Alpha Fund, which will be managed by its $25bn hedge funds team and will leverage a diversified set of investment strategies across different asset classes, including equity, fixed income, cash equivalents, currencies and commodities.

According to a press release, the fund intends to provide an attractive level of total return while offering low correlation to traditional asset classes and will target market neutral performance at an annualised volatility of 8% over the long-term.

The fund is registered in the UK and Luxembourg and is expected to expand to other markets in the coming weeks.

In a statement, Eban Cucinotta, a Portfolio Manager and Head of Portfolio Construction and Quantitative Analytics for MSIM’s hedge funds team, said: “We have used systematically driven, academically based alternative sources of return in our custom portfolio solutions for many years and believe them to be an integral part of an investor’s toolkit. We are excited to bring to market the Systematic Liquid Alpha strategy which we believe offers efficient access to these potentially diversifying exposures, in a daily dealing UCITS wrapper after managing the strategy live since August 2018 in offshore vehicles.”

Rob Lunn, Head of UK Distribution at MSIM, added: “We are delighted to bring this compelling strategy to the UK market. Designed for investors interested in gaining access to alternative asset classes, the Systematic Liquid Alpha Fund’s multi-asset approach and experienced management team make it an appealing option for investors looking to diversify their portfolios and reduce volatility. By focusing outside of traditional asset classes, the Fund offers investors seeking portfolio diversification broad exposure to market neutral factors in a liquid format.”

MSIM is the investment management business of global financial services firm Morgan Stanley and manages $1.5tn in AUM as of 31 December 2023.

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