Morgan Stanley Investment Management has launched the Morgan Stanley Global Long/Short Fund, a fund of hedge funds that offers a diversified, institutional-quality portfolio of long/short equity hedge funds to eligible individual investors and smaller institutional clients.

The Global Long/Short Fund is intended to be managed for long-term capital appreciation and to have moderate volatility as compared to the equity markets. It will invest in approximately 20-25 long/short equity hedge funds with diversification by manager and geography.

The minimum investment in the Global Long/Short Fund is $100,000.

Stu Bohart, head of Alternative Investments for MSIM, said: "The Global Long/Short Fund may be an attractive option for investors seeking practical entry into the long/short equity hedge fund marketplace as well as equity-like exposure with potentially less downside volatility in their portfolios."

The launch of the new fund augments Morgan Stanley Alternative Investment Partners' current registered fund offerings for eligible individual investors and smaller institutional clients.

Morgan Stanley AIP, founded in April 2000, manages portfolios of hedge funds and private equity funds for some of the world's largest institutions and high net worth individuals. It launched the Absolute Return Fund and Absolute Return Fund STS in 2006. The Absolute Return Fund had over $900 million in net assets as of 31 December 2007.

Morgan Stanley Investment Management, together with its investment advisory affiliates, has nearly 800 investment professionals around the world and approximately $597 billion in assets under management or supervision.