Alpha Hedged Strategies Fund Earns Lipper's Top Spot for Three-Year Performance
February 21 2007 - 9:32AM
PR Newswire (US)
Alpha Hedged Strategies Fund (ALPHX) Is Ranked #1 out of 21 for
Three Years #2 out of 32 for One Year Lipper's Equity Market
Neutral Category for the periods ending 12/31/06 (based on total
returns) WHITE PLAINS, N.Y., Feb. 21 /PRNewswire-FirstCall/ -- AIP
Mutual Funds' flagship Alpha Hedged Strategies Fund (Ticker:
ALPHX), was launched in September 2002 and has quickly climbed to
the top of the Equity Market Neutral Funds category. The Fund,
managed by Alternative Investment Partners, LLC (AIP), was ranked
number 1 out of 21 and number 2 out of 32 for 3-year and 1-year
total returns, respectively, as of December 31, 2006. The Alpha
Hedged Strategies Fund outperformed its category competitors with a
9.62% annualized 3-year return; the category average was 3.54%, as
surveyed by Lipper Analytical Services, Inc.* Standardized
Performance as of 12/31/06 (%) Since Incep. 1Yr 3 Yr* 9/23/02*
ALPHX 9.32 9.62 6.93 Lipper EMN Category 5.14 3.54 N/A Lipper
Ranking 2/32 1/21 N/A Performance data quoted represents past
performance; past performance does not guarantee future results.
The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost. Current performance of the
Fund may be lower or higher than the performance quoted. Most
recent month-end performance is available by calling
1-877-LOW-BETA. *Average Annualized Return The Alpha Hedged
Strategies Fund is among the first open-end multi- strategy mutual
fund to directly access multiple specialized hedge fund managers.
Representing the next generation of products for hedged alternative
strategies investing, the Fund is an innovative open-end mutual
fund designed to minimize equity market correlation and volatility
by employing a variety of absolute return hedged strategies. The
Alpha Hedged Strategies Fund currently manages over $300MM and
received a 4-star Overall Morningstar Rating(TM) among 53 funds in
the Long/Short Category for the 3-year period ended 12/31/06
(derived from a weighted average of the Fund's three-year
Morningstar Ratings metrics, which are based on risk-adjusted
return performance)**. "We are pleased to be recognized as number
one for three-year performance in our Lipper category, our goal is
always to exceed the risk-adjusted return expectations of our
investors and we believe we've been able to do that," noted Lee
Schultheis, Chief Investment Strategist and Founder of AIP. "We've
also been competitive with Hedge Fund Research, Inc.'s (HFRI)
Conservative Hedge Fund-of-Funds index over the last 4 years, so we
have 'walked the walk' and are not just the latest in the recent
wave of new products that claim to be able to 'mimic' hedge fund
performance in some indirect manner." The Fund has a portfolio that
operates much like a hedge fund-of-funds, and is accessible to most
investors. AIP currently utilizes 18 hedge fund managers to manage
the individual portfolio strategies within ALPHX. As with a
traditional hedge fund structure, the Fund can sell short (up to
100% of net assets), use leverage (up to 50% of net assets), and
can employ any strategy where the securities involved can be priced
on a daily market value basis. However, because The Alpha Hedged
Strategies Fund is structured as a mutual fund, it also offers
several key features including daily liquidity, no lock- ups, no
accreditation requirement, no performance fees, and 1099-tax
reporting. The Fund's investors gain exposure to a broad variety of
actively managed alternative strategies. This approach has
delivered both a conservative portfolio risk profile and strong
risk-adjusted performance. By controlling custody of assets,
valuation, and leverage on the underlying security pools, as well
as having 100% transparency for all positions and trades, AIP can
help mitigate a number of the primary risks that lead to the
occasional downfall that can happen to an underlying hedge fund
within a hedge fund-of-funds structure. "As the universe of hedged
mutual funds grows and develops, the real test for this space will
be for funds to demonstrate consistent patterns of performance in a
variety of equity market and interest rate environments. AIP is
focused on continuing to be a pioneer in providing a diverse
platform of real hedge fund managers and strategies striving to
achieve the level of consistency historically associated with
conservative hedge fund-of-funds, but in the more accessible mutual
fund format," said Mr. Schultheis. For more information or to speak
with Lee Schultheis please contact Jennifer Connelly at (973)
625-1130 or . Prospective investors can also call 1-866-LOW-BETA or
visit http://www.aipfunds.com/. About the Alpha Hedged Strategies
Fund The Fund is an open-end mutual fund that invests its portfolio
in a manner similar to a conservative hedge fund-of-funds. The Fund
employs a multi- manager approach to a variety of hedged
alternative investment styles, but each with a liquid portfolio of
its own securities, using the limited amounts of leverage and
short-selling allowable in open-end mutual funds. ALPHX provides
broad exposure to a variety of active management in alternative
strategies including: Distressed Securities, Earnings Revision
Long/Short Equity, Momentum Long/Short Equity, REIT Long/Short
Equity, Deep Discount Value Long/Short Equity, International
Long/Short Equity, Healthcare/Biotech Long/Short Equity, Global
Long/Short Equity, Equity Options Overlay, Global Hedged Income,
Merger Arbitrage, Fixed-Income Arbitrage, and Convertible Bond
Arbitrage. The Fund utilizes the talents of highly specialized
hedge fund managers, as sub-advisors to the underlying funds, in
executing their alternative investment strategies. The Fund offers
the portfolio diversification benefits that institutions, pension
funds, endowments & foundations, and high-net worth individuals
have become accustomed to in hedge funds. The Fund combines these
portfolio attributes with the daily pricing, liquidity, and other
shareholder features commonly associated with open-end mutual
funds. As such, the Fund is positioned to provide its shareholders
with portfolio diversification that goes well beyond the
traditional asset classes of stocks, bonds and cash. Fund
Disclosure The Fund's investment objectives, risks, charges and
expenses must be considered carefully before investing. The
prospectus contains this and other important information about the
investment company, and it may be obtained by calling
1-877-Low-Beta (569-2382), or visiting http://www.aipfunds.com/.
Read it carefully before investing. About Risk Certain hedging
techniques and leverage employed in the management of the Fund may
accelerate the velocity of possible losses. Short selling involves
the risk of potentially unlimited increase in the market value of
the security sold short, which could result in potentially
unlimited loss for the Fund. Derivatives involve investment
exposure that may exceed the original cost and a small investment
in derivatives could have a large potential impact on the
performance of the Fund. Options held in the Fund may be illiquid
and the fund manager may have difficulty closing out a position.
The Fund may also invest in: - smaller capitalized companies -
subject to more abrupt or erratic market movements than larger,
more established companies; - foreign securities, which involve
currency risk, different accounting standards and are subject to
political instability; - securities limited to resale to qualified
institutional investors, which can affect their degree of
liquidity; - shares of other investment companies that invest in
securities and styles similar to the Fund, resulting in a generally
higher investment cost than from investing directly in the
underlying shares of these funds. The Fund intends to utilize these
individual securities and hedging techniques in matched
combinations that are designed to neutralize or offset the
individual risks of employing these techniques separately. Some of
these matched strategies include: merger arbitrage, long/short
equity, convertible bond arbitrage and fixed-income arbitrage.
There is no assurance that these strategies will protect against
losses. Mutual fund investing involves risk; loss of principal is
possible. Please consult an investment professional for advice
regarding your particular circumstances. An investment in the Funds
may not be suitable for all investors. * Lipper Analytical
Services, Inc. is an independent mutual fund research and rating
service. Each Lipper average represents a universe of funds with
similar investment objectives. Rankings for the periods shown are
based on fund total returns with dividends and distributions
reinvested and do not reflect sales charges. While the Fund is
no-load, management fees and other expenses still apply. ** The
information contained herein: (1) is proprietary to Morningstar;
(2) may not be copied or distributed; and (3) is not warranted to
be accurate, complete or timely. Neither Morningstar nor its
content providers are responsible for any damages or losses arising
from any use of this information. Past performance is no guarantee
of future results. For each fund with at least a three-year
history, Morningstar calculates a Morningstar Rating(TM) metric
each month by subtracting the return on a 90-day U.S. Treasury Bill
from the fund's load-adjusted return for the same period, and then
adjusting this excess return for risk. The top 10% of funds in each
category receive 5 stars, the next 22.5% receive 4 stars the next
35% receive 3 stars, the next 22.5% receive 2 stars and the bottom
10% receive 1 star. The Overall Morningstar Rating(TM) for a fund
is derived from a weighted average of the performance figures
associated with its three-, five-, and ten- year (if applicable)
Morningstar Rating(TM) metrics. The Alpha Hedged Strategies Fund
was rated against the following numbers of U.S. domiciled
Long-Short funds over the following time periods: 53 funds in the
last three years. With respect to these Long-Short funds, Alpha
Hedged Strategies Fund received a Morningstar Rating(TM) of 4-Stars
for the three-year period ending 12/31/06. Morningstar defines
Long-Short as: a fund with roughly 20% their total net assets in
short positions. HFRI (Hedge Funds Research, Inc.) Performance
Indices are equally weighted hedge fund performance indices broken
down into 37 different categories by strategy, such as "equity
market neutral" investing and "conservative or market-neutral
fund-of-funds" investing. Conservative Fund of Funds investing
seeks to profit by investing in various absolute return hedged
strategies. Quasar Distributors, LLC, Distributor - 2/07
DATASOURCE: AIP Mutual Funds CONTACT: Jennifer Connelly of JC
Public Relations, +1-973-625-1130, Web site:
http://www.aipfunds.com/
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