Prepare for your Morgan Stanley Alternatives interview

Alternatives portfolio analysis and manager selection cases calibrated to Morgan Stanley’s asset allocation and risk management focus.

Socratify AI

The Interview

What Morgan Stanley is looking for

Portfolio Allocation Interview

Alternatives Portfolio Analysis

01Manager Due Diligence

02Asset Allocation Strategy

03Risk-Return Optimization

04Fee Impact Analysis

Behavioral Interview

01Investment Acumen

02Risk Discipline

03Commercial Thinking

04Team Collaboration

Alternatives manager selection & evaluation//Institutional asset allocation thinking//Fee impact & net return optimization

Practice Library

Morgan Stanley exercises

Ready to ace your Morgan Stanley Alternatives interview?

Prepare for your Morgan Stanley Alternatives interview

Alternatives portfolio analysis and manager selection cases calibrated to Morgan Stanley’s asset allocation and risk management focus.

Socratify AI

The Interview

What Morgan Stanley is looking for

Portfolio Allocation Interview

Alternatives Portfolio Analysis

01Manager Due Diligence

02Asset Allocation Strategy

03Risk-Return Optimization

04Fee Impact Analysis

Behavioral Interview

01Investment Acumen

02Risk Discipline

03Commercial Thinking

04Team Collaboration

Alternatives manager selection & evaluation//Institutional asset allocation thinking//Fee impact & net return optimization

How It Works

Master Morgan Stanley Alternatives Interviews

Manager selection cases and portfolio allocation, scored on Morgan Stanley’s investment evaluation dimensions. · Click to expand

1Your Hedge Fund Goals

Portfolio Construction

Practitioner

Risk Management

Practitioner

2Hedge Fund Case Prep

Manage a $3B event-driven portfolio. How do you position for M&A spreads and corporate...

CASE INTERVIEWHard

Morgan Stanley

3Frameworks

Framework

Does the manager have a proven edge and repeatable process?

What is the track record vs peers and benchmarks?

3-year return: 18% gross (vs EM benchmark +8%, peers avg 12%)

Sharpe ratio: 1.5 (vs peer median 0.9, industry benchmark 1.2)

Is alpha generation consistent or concentrated?

Win rate: 68% positive months (12 of 24 months > +2%)

Max drawdown: -14% (vs manager target -15%, peer median -18%)

Does this strategy complement our existing portfolio?

What is the correlation with our core positions?

Correlation to core US long-short: 0.3 (low, good hedge)

Correlation to FX carry trades: 0.6 (moderate risk)

Does this reduce portfolio volatility?

Portfolio volatility pre-allocation: 10.5% | post-allocation: 9.8%

Expected Sharpe improvement: 1.65 → 1.78 (+8% efficiency gain)

What is the downside risk and liquidity exposure?

How does this perform in tail risk scenarios?

Value-at-Risk (95% confidence): -2.8% over 1 month

Expected shortfall (99% worst case): -4.5% vs peers -5.2%

Can we exit quickly if needed?

Redemption terms: 60 days notice, quarterly gates, 2% fee

4Feedback

Risk-Adjusted Returns

Distinctive

Correlation & Diversification

Distinctive

Sharpe Ratio Optimization

Strong

Tail Risk Management

Strong

Repeat

Practice Library

Morgan Stanley exercises

Evaluate an emerging markets hedge fund with 18% gross returns, 12% volatility, and 2%...

LEARNHard

Asset Management · Manager SelectionMorgan Stanley

A hedge fund in your portfolio has underperformed by 4% this year. Walk through your...

CASE INTERVIEWHard

Asset Management · Portfolio ManagementMorgan Stanley

Design a due diligence framework to assess manager quality across three hedge fund...

LEARNMedium

Asset Management · Due DiligenceMorgan Stanley

Tell me about a time you made a contrarian investment decision and how it turned out.

BEHAVIORALMedium

Behavioral · Investment JudgmentMorgan Stanley

Describe a situation where you had to balance manager performance concerns with...

BEHAVIORALMedium

Behavioral · Stakeholder ManagementMorgan Stanley