Morgan Stanley Institutional Fund of Hedge Funds LP ("IFHF" or the "Fund") seeks capital appreciation by investing all of its assets in investment funds ("Investment Funds") managed by unaffiliated third-party investment managers ("Investment Managers") who employ a variety of alternative investment strategies in pursuit of attractive risk-adjusted returns (i.e., returns adjusted to take into account the volatility of those returns). These investment strategies allow Investment Managers the flexibility to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the global capital markets. Philosophically, IFHF targets investments in Investment Funds that, in aggregate, have provided a low beta relative to broad market indices and have demonstrated a low volatility comparable to or below that of traditional fixed income benchmarks. IFHF invests in Investment Funds that employ a variety of alternative investment strategies, including relative value strategies, security selection strategies, specialist credit strategies and directional strategies. AUM begins January 2011.