Form N-CSR Alternative Investment For: Dec 31

ALTERNATIVE INVESTMENT PARTNERS
ABSOLUTE RETURN FUND STS
Consolidated Financial Statements with Report of
Independent Registered Public Accounting Firm
For the Year Ended December 31, 2023

Oath and Affirmation
To the best of my knowledge and belief, the information contained in this document is accurate and
complete.
Lee Spector, Executive Director of Morgan Stanley Alternative Investment LLC, the General Partner
of Morgan Stanley AIP GP LP, the Commodity Pool Operator of Alternative Investment Partners
Absolute Return Fund STS
(This oath is required by Section 4.12(c)(3) of the Commodity Futures Trading Commission Regulations under the
Commodity Exchange Act, as amended.)

Audited financial statements for Alternative Investment Partners Absolute Return Fund for the year ended December 31, 2023
are attached to these consolidated financial statements and are an integral part thereof.
Alternative Investment Partners Absolute Return Fund STS
Consolidated Financial Statements with Report of Independent
Registered Public Accounting Firm
For the Year Ended December 31, 2023
Contents
Management’s Discussion of Fund Performance (Unaudited)………………………………………1
Report of Independent Registered Public Accounting Firm …………………………………………………….. 4
Audited Consolidated Financial Statements
Consolidated Statement of Assets and Liabilities …………………………………………………………………… 5
Consolidated Statement of Operations ………………………………………………………………………………….. 6
Consolidated Statements of Changes in Net Assets ………………………………………………………………… 7
Consolidated Statement of Cash Flows ………………………………………………………………………………… 8
Notes to Consolidated Financial Statements ………………………………………………………………………….. 9
Proxy Voting Policies and Procedures and Proxy Voting Record (Unaudited) …………………………. 15
Quarterly Portfolio Schedule (Unaudited) …………………………………………………………………………… 15
Information Concerning Trustees and Officers (Unaudited) ………………………………………………….. 16

1
Alternative Investment Partners Absolute Return Fund STS
Management’s Discussion of Fund Performance
Investment Objective and Strategy Summary
Alternative Investment Partners Absolute Return Fund STS’s (the “Fund”) investment objective is to seek
capital appreciation.
The Fund, through the investment of substantially all of its assets in Alternative Investment Partners
Absolute Return Fund (the “Master Fund”), invests substantially all its assets in private investment funds
(commonly referred to as hedge funds) that are managed by a select group of alternative investment
managers that employ different “absolute return” investment strategies in pursuit of attractive risk-adjusted returns consistent with the preservation of capital. “Absolute return” refers to a broad class of
investment strategies that are managed without reference to the performance of equity, debt and other
markets. “Absolute return” investment strategies allow unaffiliated third-party investment managers the
flexibility to use leveraged or short-sale positions to take advantage of perceived inefficiencies across the
global capital markets. These strategies are in contrast to the investment programs of “traditional”
registered investment companies, such as mutual funds. Absolute return strategies can be contrasted with
“relative return strategies” which generally seek to outperform a corresponding benchmark equity or fixed
income index. The Master Fund seeks attractive “risk-adjusted” returns, which are returns adjusted to take
into account the volatility of those returns. The Master Fund intends to invest in private investment funds
that employ the following principal strategies: relative value strategies, security selection strategies,
specialist credit strategies and directional strategies.
Performance Discussion
Total Returns
One Year Five Years Ten Years
Alternative Investment Partners Absolute Return Fund STS 5.75% 6.30% 4.47%
Average Annual

2
Alternative Investment Partners Absolute Return Fund STS
Management’s Discussion of Fund Performance (continued)
Performance Discussion (continued)
The chart below illustrates the growth of a hypothetical $50,000 investment in the Fund over the ten years
ending December 31, 2023.
Performance data quoted represents past performance, which is not predictive of future results, and
current performance may be lower or higher than the figures shown. Total returns do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
During the twelve months ended December 31, 2023, the Fund returned 5.75% (excluding sales load),
outperforming bonds (Bloomberg US Aggregate Bond Index +5.53%) and cash (1 month SOFR +5.20%),
but underperforming equities (S&P 500 Total Return Index +26.29%). The Fund continued its recent
history of generating positive returns untethered from the performance of stocks – the Fund’s 3 year beta
to the S&P 500 Total Return Index at December 31, 2023 is 0.00. In 2022, the Fund’s limited equity beta
benefited the Fund as equities declined; in 2023 the Fund’s limited equity beta resulted in the Fund
receiving little to no benefit from the equity rally.

3
Alternative Investment Partners Absolute Return Fund STS
Management’s Discussion of Fund Performance (continued)
Performance Discussion (continued)
Each of the Master Fund’s eleven strategies generated positive results in 2023:
CTA/Managed Futures 0.92%
Distressed 0.55%
Equity L/S High Hedge 2.54%
Equity L/S Opportunistic 0.34%
Event Driven Credit 0.51%
Fixed Income Arbitrage 0.62%
Macro 0.27%
Multi Strategy 0.02%
Other Directional 0.09%
Private Placements 0.45%
Statistical Arbitrage 3.43%
Statistical Arbitrage funds (+9.20% average return in 2023), which carry little to no net equity beta,
generated positive results in each quarter, led by Torus (+15.1%) and Squarepoint Focus (+13.9%).
Equity Long/Short High Hedge funds (+12.27% in 2023), with little equity beta, generated positive
results in each month, profiting from multiple funds. Multi-manager platform funds (Alyeska Fund LP
+16.5%, Holocene Advisors Fund LP +11.5%) generated consistently positive results, largely profiting
from equity trading.
Thank you for your support for the Fund.

4
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of Alternative Investment Partners Absolute Return Fund STS
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of Alternative Investment
Partners Absolute Return Fund STS (the “Fund”), as of December 31, 2023, and the related consolidated
statements of operations and cash flows for the year then ended, the consolidated statements of changes in net
assets for each of the two years in the period then ended and the related notes (collectively referred to as the
“financial statements”). In our opinion, the financial statements present fairly, in all material respects, the
consolidated financial position of the Fund at December 31, 2023, the consolidated results of its operations and
its cash flows for the year then ended and the consolidated changes in its net assets for each of the two years in
the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an
opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be
independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform,
an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain
an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on
the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such
opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our procedures included confirmation of investments owned as of December 31, 2023, by correspondence with
the transfer agent. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements. We believe that
our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
February 29, 2024

See accompanying notes and attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
5
Alternative Investment Partners Absolute Return Fund STS
Consolidated Statement of Assets and Liabilities
December 31, 2023
Assets
Investment in Alternative Investment Partners Absolute Return Fund, at fair value 173,758,141 $
Cash and cash equivalents 994,579 Repurchases receivable from Alternative Investment Partners Absolute Return Fund 3,306,439 Withholding tax credit 251,866
Total assets 178,311,025 Liabilities
Payable for share repurchases 3,081,439
Due to Alternative Investment Partners Absolute Return Fund 641,896 Subscriptions received in advance 50,000 Accrued expenses and other liabilities 112,942
Total liabilities 3,886,277 Net assets $ 174,424,748
Net assets consist of:
Net capital 48,805,685 $
Total distributable earnings (loss) 125,619,063 Net assets $ 174,424,748
Net asset value per share:
87,783.074 shares issued and outstanding, no par value,
1,000,000 registered shares 1,987.00 $
Maximum offering price per share
($1,987.00 plus sales load of 3% of net asset value per share) 2,046.61 $

See accompanying notes and attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
6
Alternative Investment Partners Absolute Return Fund STS
Consolidated Statement of Operations
For the Year Ended December 31, 2023
Net investment income (loss) allocated from Alternative Investment Partners
Absolute Return Fund
Dividend income 134,553 $
Expenses (5,903,386) Net investment income (loss) allocated from Alternative Investment Partners
Absolute Return Fund (5,768,833)
Fund expenses
Withholding taxes 873,644 Professional fees 227,877
Transfer agent fees 86,825 Printing fees 30,026
Registration fees 25,964
Trustees’ fees 4,447 Custody fees 3,260
Other 5,105
Total fund expenses 1,257,148 Net investment income (loss) (7,025,981) Realized and unrealized gain (loss) from investments allocated from
Alternative Investment Partners Absolute Return Fund
Net realized gain (loss) from investments 7,540,354 Net change in unrealized appreciation (depreciation) on investments 9,285,888 Net realized and unrealized gain (loss) from investments allocated from
Alternative Investment Partners Absolute Return Fund 16,826,242 Net increase (decrease) in net assets resulting from operations 9,800,261 $

See accompanying notes and attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
7
Alternative Investment Partners Absolute Return Fund STS
Consolidated Statements of Changes in Net Assets
For the year ended December 31, 2022
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss) $ (5,927,882)
Net realized gain (loss) from investments 17,904,302
Net change in unrealized appreciation (depreciation) on investments (2,729,538)
Net increase (decrease) in net assets resulting from operations 9,246,882
Shareholder transactions:
Subscriptions (representing 346.222 shares) 625,000
Repurchases (representing 7,139.005 shares) (13,014,347)
Net increase (decrease) in net assets from shareholder transactions (12,389,347)
Total increase (decrease) in net assets (3,142,465)
Net assets, beginning of year (representing 100,343.695 shares) 178,916,273
Net assets, end of year (representing 93,550.912 shares) $ 175,773,808
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss) $ (7,025,981)
Net realized gain (loss) from investments 7,540,354
Net change in unrealized appreciation (depreciation) on investments 9,285,888
Net increase (decrease) in net assets resulting from operations 9,800,261
Shareholder transactions:
Subscriptions (representing 695.439 shares) 1,320,000
Repurchases (representing 6,463.277 shares) (12,469,321)
Net increase (decrease) in net assets from shareholder transactions (11,149,321)
Total increase (decrease) in net assets (1,349,060)
Net assets, beginning of year (representing 93,550.912 shares) 175,773,808
Net assets, end of year (representing 87,783.074 shares) $ 174,424,748
For the year ended December 31, 2023

See accompanying notes and attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
8
Alternative Investment Partners Absolute Return Fund STS
Consolidated Statement of Cash Flows
For the Year Ended December 31, 2023
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations 9,800,261 $
Adjustments to reconcile net increase (decrease) in net assets resulting
from operations to net cash provided by (used in) operating activities:
Net investment (income) loss allocated from Alternative Investment Partners
Absolute Return Fund 5,768,833 Net realized (gain) loss from investments allocated from Alternative Investment
Partners Absolute Return Fund (7,540,354) Net change in unrealized (appreciation) depreciation on investments allocated
from Alternative Investment Partners Absolute Return Fund (9,285,888)
Purchase of investments in Alternative Investment Partners Absolute Return Fund (605,000) Proceeds from sales of investments in Alternative Investment Partners Absolute
Return Fund 13,939,208 (Increase) decrease in repurchases receivable from Alternative Investment Partners
Absolute Return Fund (817,004) (Increase) decrease in withholding tax credit (477) Increase (decrease) in due to Alternative Investment Partners Absolute Return Fund 79,234 Increase (decrease) in accrued expenses and other liabilities (18,579) Net cash provided by (used in) operating activities 11,320,234 Cash flows from financing activities
Subscriptions 1,320,000 Repurchases (12,469,321) Increase (decrease) in payable for share repurchases 586,854 Increase (decrease) in subscriptions received in advance 50,000 Net cash provided by (used in) financing activities (10,512,467) Net change in cash and cash equivalents 807,767 Cash and cash equivalents, at beginning of year 186,812
Cash and cash equivalents, at end of year $ 994,579

Alternative Investment Partners Absolute Return Fund STS
Notes to Consolidated Financial Statements
December 31, 2023
See attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
9
1. Organization and Consolidation
Alternative Investment Partners Absolute Return Fund STS (the “Fund”) was organized under the laws of
the State of Delaware as a statutory trust on October 31, 2005. The Fund commenced operations on
September 1, 2006 and operates pursuant to an Agreement and Declaration of Trust (the “Trust Deed”).
The Fund is registered under the U.S. Investment Company Act of 1940, as amended (the “1940 Act”), as
a closed-end, non-diversified management investment company. The Fund’s term is perpetual unless the
Fund is otherwise terminated under the terms of the Trust Deed or unless and until required by law.
The Fund is a “Feeder” fund in a “Master-Feeder” structure whereby the Fund invests substantially all of
its assets in AIP Absolute Return Fund LDC (the “Offshore Fund”), a Cayman Islands limited duration
company, which in turn invests substantially all of its assets in Alternative Investment Partners Absolute
Return Fund (the “Master Fund”). The Master Fund is a statutory trust organized under the laws of the
State of Delaware and is registered under the 1940 Act, as a closed-end, non-diversified, management
investment company. Morgan Stanley AIP GP LP serves as the Master Fund’s investment adviser (the
“Investment Adviser”). The Investment Adviser is an affiliate of Morgan Stanley and is registered as an
investment adviser under the U.S. Investment Advisers Act of 1940, as amended and as a commodity
trading adviser and a commodity pool operator with the Commodity Futures Trading Commission
(“CFTC”) and the National Futures Association (“NFA”). The Fund and the Offshore Fund have the same
investment objective as the Master Fund. The Master Fund’s investment objective is to seek capital
appreciation principally through investing in investment funds (“Investment Funds”) managed by third-party investment managers who employ a variety of “absolute return” investment strategies in pursuit of
attractive risk-adjusted returns consistent with the preservation of capital. “Absolute return” refers to a
broad class of investment strategies that are managed without reference to the performance of equity,
debt, and other markets. “Absolute return” 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. The Master Fund may seek to gain investment exposure to certain Investment Funds or to
adjust market or risk exposure by entering into derivative transactions such as total return swaps, options,
and futures.
The Fund consolidates the Offshore Fund, a wholly-owned subsidiary, and has included all of the assets
and liabilities and revenues and expenses of the Offshore Fund in the accompanying financial statements.
Intercompany balances have been eliminated through consolidation. As of December 31, 2023, the Fund
had a 59.56% indirect ownership interest in the Master Fund. The financial statements of the Master
Fund, including the Schedule of Investments, are attached to this report and should be read in conjunction
with the Fund’s consolidated financial statements.
The Fund has a Board of Trustees (the “Board”) that has overall responsibility for monitoring and
overseeing the Fund’s investment program and its management and operations. A majority of the
members of the Board (the “Trustees”) are not “interested persons” (as defined by the 1940 Act) of the
Fund or the Investment Adviser. The same Trustees also serve as the Master Fund’s Board of Trustees.

Alternative Investment Partners Absolute Return Fund STS
Notes to Consolidated Financial Statements (continued)
See attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
10
2. Significant Accounting Policies
The following significant accounting policies are in conformity with U.S. generally accepted accounting
principles (“US GAAP”). Such policies are consistently followed by the Fund in preparation of its
consolidated financial statements. Management has determined that the Fund is an investment company in
accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Topic 946, “Financial Services – Investment Companies”, for the purpose of financial reporting.
The preparation of financial statements in conformity with US GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of
increases or decreases in net assets from operations during the reporting period. Actual results could differ
from those estimates. The Fund’s financial statements are stated in United States dollars.
Investment in the Fund
The Fund offers on a continuous basis through Morgan Stanley Distribution, Inc. (the “Distributor”), an
affiliate of Morgan Stanley, 1,000,000 shares of beneficial interest (“Shares”). The initial closing date
(“Initial Closing Date”) for public offering of Shares was September 1, 2006. Shares were offered until
the Initial Closing Date at an initial offering price of $1,000 per Share, plus any applicable sales load, and
have been continuously offered thereafter for purchase as of the first day of each calendar month at the
Fund’s then current net asset value per Share, plus any applicable sales load. The Distributor may enter
into selected dealer agreements with various brokers and dealers (“Selling Agents”), some of which are
affiliates of the Fund, that have agreed to participate in the distribution of the Fund’s Shares. Shares may
also be purchased through any registered investment adviser (a “RIA”) that has entered into an
arrangement with the Distributor for such RIA to recommend Shares to its clients in conjunction with a
“wrap” fee, asset allocation or other managed asset program by such RIA.
Shares are sold only to certain special tax status investors (“Shareholders”), namely tax-exempt and tax-deferred investors. These investors also must represent that they are “accredited investors” within the
meaning of Rule 501(a) of Regulation D promulgated under the U.S. Securities Act of 1933, as amended.
The Distributor or any Selling Agent or RIA may impose additional eligibility requirements for investors
who purchase Shares through the Distributor or such Selling Agent or RIA. The minimum initial
investment in the Fund by any Shareholder is $50,000. The minimum additional investment in the Fund
by any Shareholder is $25,000. The minimum initial and additional investments may be reduced by the
Fund with respect to certain Shareholders. Shareholders may only purchase their Shares through the
Distributor, a Selling Agent or a RIA.
The Distributor and Selling Agents may charge Shareholders a sales load of up to 3% of the
Shareholder’s purchase. The Distributor or a Selling Agent may, in its discretion, waive the sales load for
certain investors. In addition, purchasers of Shares in conjunction with certain “wrap” fee, asset allocation
or other managed asset programs sponsored by an investment adviser, including an affiliate of the
Adviser, or Morgan Stanley and its affiliates (including the Adviser) and the directors, partners,
principals, officers and employees of Morgan Stanley and its affiliates may not be charged a sales load by
the Distributor or Selling Agent.

Alternative Investment Partners Absolute Return Fund STS
Notes to Consolidated Financial Statements (continued)
See attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
11
2. Significant Accounting Policies (continued)
Investment in the Fund (continued)
The Fund may from time to time offer to repurchase Shares (or portions of them) at net asset value
pursuant to written tenders by Shareholders. Any offer to repurchase Shares by the Fund is only made to
Shareholders at the same times as, and in parallel with, each repurchase offer made by the Master Fund to
its investors, including, indirectly, the Fund. Each such repurchase offer made by the Master Fund will
generally apply to up to 15% of the net assets of the Master Fund. Repurchases are made at such times, in
such amounts and on such terms as may be determined by the Board, in its sole discretion. In determining
whether the Fund should offer to repurchase Shares (or portions of them) from Shareholders, the Board
will consider the recommendations of the Adviser as to the timing of such an offer, as well as a variety of
operational, business and economic factors. The Adviser expects that it will recommend to the Board that
the Fund offers to repurchase Shares (or portions of them) from Shareholders quarterly, on each March
31, June 30, September 30, and December 31. In general, the Fund will initially pay at least 90% of the
estimated value of the repurchased Shares to Shareholders as of the later of: (1) a period of within 30 days
after the value of the Shares to be repurchased is determined, or (2) if the Master Fund has requested
withdrawals of its capital from any Investment Funds in order to fund the repurchase of Shares, within ten
business days after the Master Fund has received at least 90% of the aggregate amount withdrawn by the
Master Fund from such Investment Funds. The remaining amount (the “Holdback Amount”) will be paid
promptly after completion of the annual audit of the Fund and preparation of the Fund’s audited
consolidated financial statements. As of December 31, 2023, the total of all Shareholders’ Holdback
Amounts was $211,805 which includes any Holdback Amount for repurchases as of December 31, 2023,
and is included in payable for share repurchases in the Consolidated Statement of Assets and Liabilities.
Investment in the Master Fund
The Fund records its investment in the Master Fund at fair value which is represented by the Fund’s
proportionate indirect interest in the net assets of the Master Fund as of December 31, 2023. Valuation of
Investment Funds and other investments held by the Master Fund, including the Master Fund’s disclosure
of investments under the three-tier hierarchy, is discussed in the notes to the Master Fund’s financial
statements. The Fund records its pro rata share of the Master Fund’s income, expenses, and realized and
unrealized gains and losses. The performance of the Fund is directly affected by the performance of the
Master Fund. The financial statements of the Master Fund, which are attached, are an integral part of
these consolidated financial statements. Please refer to the accounting policies disclosed in the financial
statements of the Master Fund for additional information regarding significant accounting policies that
affect the Fund.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash held on deposit and short term highly liquid investments that
are readily convertible to known amounts of cash and have maturities of three months or less. As of
December 31, 2023, the Fund did not hold any cash equivalents.

Alternative Investment Partners Absolute Return Fund STS
Notes to Consolidated Financial Statements (continued)
See attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
12
2. Significant Accounting Policies (continued)
Income Recognition and Expenses
The Fund recognizes income and expenses on an accrual basis. Income, expenses, and realized and
unrealized gains and losses are recorded monthly. The Fund accrues its own expenses. The Fund does not
pay the Adviser a management fee. As an indirect holder of shares in the Master Fund, however, the Fund
does bear its allocable portion (based on the net asset value of the Master Fund attributable to the Fund)
of the expenses of the Master Fund, including the management fee paid to the Investment Adviser and
shareholder servicing fees paid to the Distributor as described in the Master Fund’s financial statements.
Please refer to the attached financial statements of the Master Fund for a discussion of the computation of
the management fee and shareholder servicing fee. Included in expenses allocated from the Master Fund
in the Consolidated Statement of Operations is $1,755,742 and $1,305,341, which are the Fund’s
proportionate share of management fees and shareholder servicing fees, respectively, incurred by the
Master Fund for the year ended December 31, 2023.
Third-Party Service Providers
State Street Bank and Trust Company (“State Street”) provides accounting and administrative services to
the Fund. State Street also serves as the Fund’s custodian.
UMB Fund Services, Inc. serves as the Funds transfer agent. Transfer agent fees are payable monthly
based on an annual Fund base fee, annual per Shareholder account changes, and out-of-pocket expenses
incurred by the transfer agent on the Fund’s behalf.
Income and Withholding Taxes
The Fund expects to be treated as a partnership for U.S. federal income tax purposes. No provision for
federal, state, or local income taxes is required in the consolidated financial statements. In accordance
with the U.S. Internal Revenue Code of 1986, as amended, each of the Shareholders is to include its
respective share of the Fund’s realized profits or losses in its individual tax returns. The Fund files tax
returns with the U.S. Internal Revenue Service and various states.
The Master Fund is required to withhold up to 30% U.S. tax from U.S. source dividends and 21% (33%
for non-corporate, non-U.S. investors) U.S. tax from effectively connected income allocable to its non-U.S. investors and remit those amounts to the U.S. internal Revenue Service on behalf of the non-U.S.
investors. If the Master Fund incurs a withholding tax or other tax obligation with respect to the share of
the Master Fund’s income allocable to any Shareholder, then the Master Fund, without limitation of any
other rights of the Fund, will cause a Share repurchase from the Master Fund in the amount of the tax
obligation. The amount of the tax obligation attributable to the Fund will be treated as an expense by the
Fund.
For the year ended December 31, 2023, the Master Fund recorded an estimated tax withholding amount of
$873,644 related to the Fund’s share of withholding taxes, which is included in the Fund’s Consolidated
Statement of Operations.

Alternative Investment Partners Absolute Return Fund STS
Notes to Consolidated Financial Statements (continued)
See attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
13
2. Significant Accounting Policies (continued)
Income and Withholding Taxes (continued)
The Fund has concluded there are no significant uncertain tax positions that would require recognition in
the consolidated financial statements as of December 31, 2023. If applicable, the Fund recognizes interest
accrued related to unrecognized tax benefits in interest expense and penalties in other expenses in the
Consolidated Statement of Operations. Generally, open tax years under potential examination vary by
jurisdiction, but at least each of the tax years in the four-year period ended December 31, 2023, remains
subject to examination by major taxing authorities.
3. Market Risk
The value of an investment in the Fund is based on the values of the Fund’s investments, which change
due to economic and other events that affect markets generally, as well as those that affect particular
regions, countries, industries, companies or governments. The risks associated with these developments
may be magnified if certain social, political, economic and other conditions and events adversely interrupt
the global economy and financial markets. Securities in the Fund’s portfolio may underperform due to
inflation (or expectations for inflation), interest rates, global demand for particular products or resources,
natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics),
terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global
events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health
emergencies, social and political (including geopolitical) discord and tensions or debt crises and
downgrades, among others, may result in market volatility and may have long term effects on both the
U.S. and global financial markets. It is difficult to predict when events affecting the U.S. or global
financial markets may occur, the effects that such events may have and the duration of those effects
(which may last for extended periods). These events may negatively impact broad segments of businesses
and populations and have a significant and rapid negative impact on the performance of the Fund’s
investments, and exacerbate pre-existing risks to the Fund. The occurrence, duration and extent of these
or other types of adverse economic and market conditions and uncertainty over the long term cannot be
reasonably projected or estimated at this time. The ultimate impact of public health emergencies or other
adverse economic or market developments and the extent to which the associated conditions impact the
Fund and its investments will also depend on other future developments, which are highly uncertain,
difficult to accurately predict and subject to change at any time. The financial performance of the Fund’s
investments (and, in turn, the Fund’s investment results) as well as their liquidity may be adversely
affected because of these and similar types of factors and developments, which may in turn impact
valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions.
4. Contractual Obligations
The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure
under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to
these contracts and expects the risk of loss to be remote.

Alternative Investment Partners Absolute Return Fund STS
Notes to Consolidated Financial Statements (continued)
See attached audited financial statements for Alternative Investment Partners Absolute Return Fund.
14
5. Financial Highlights
The following represents per Share data, ratios to average net assets, and other financial highlights
information for Shareholders.
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
December 31, December 31, December 31, December 31, December 31,
2023 2022 2021 2020 2019
For a Share outstanding throughout
the year:
Net asset value, beginning of year 1,878.91 $ 1,783.03 $ 1,692.95 $ 1,544.20 $ 1,463.74 $
Net investment income (loss) (a) (76.95) (60.67) (47.91) (44.27) (50.21)
Net realized and unrealized gain (loss)
from investments 185.04 156.55 137.99 193.02 130.67 Net increase (decrease) resulting
from operations 108.09 95.88 90.08 148.75 80.46 Net asset value, end of year 1,987.00 $ 1,878.91 $ 1,783.03 $ 1,692.95 $ 1,544.20 $
Total return (b) 5.75% 5.38% 5.32% 9.63% 5.50%
Ratio of total expenses (c) 4.08% 3.36% 2.79% 2.86% 3.41%
Ratio of net investment income (loss) (d) (4.00%) (3.34%) (2.78%) (2.84%) (3.33%)
Portfolio turnover (e) 19% 25% 11% 23% 33%
Net assets, end of year (000s) 174,425 $ 175,774 $ 178,916 $ 194,422 $ 210,385 $
(a) Calculated based on the average shares outstanding methodology.
(b) Total return assumes a subscription of a Share in the Fund at the beginning of the year indicated and a repurchase of the Share on the last
day of the year indicated, and does not reflect the impact of the sales load, if any, incurred when subscribing to the Fund.
(c) Includes expenses allocated from the Master Fund.
(d) Includes income and expenses allocated from the Master Fund.
(e) The portfolio turnover rate reflects investment activity of the Master Fund.
The above ratios and total returns have been calculated for the Shareholders taken as a whole. An
individual Shareholder’s return and ratios may vary from these returns and ratios due to the timing of
Share transactions and withholding tax allocation, as applicable.
6. Subsequent Events
Unless otherwise stated throughout the Notes to Consolidated Financial Statements, the Fund noted no
subsequent events that require disclosure in or adjustment to the consolidated financial statements through
the date that the financial statements were available to be issued.

15
Alternative Investment Partners Absolute Return Fund STS
Proxy Voting Policies and Procedures and Proxy Voting Record (Unaudited)
If applicable, a copy of (1) the Fund’s policies and procedures with respect to the voting of proxies
relating to the Fund’s investments; and (2) how the Fund voted proxies relating to Fund investments
during the most recent year ended December 31, is available without charge, upon request, by calling the
Fund at 1-888-322-4675. This information is also available on the Securities and Exchange Commission’s
website at http://www.sec.gov.
Quarterly Portfolio Schedule (Unaudited)
The Fund also files a complete schedule of portfolio holdings with the Securities and Exchange
Commission for the Fund’s first and third fiscal quarters on Form N-PORT. The Fund’s Forms N-PORT
are available on the Securities and Exchange Commission’s website at http://www.sec.gov. and Morgan
Stanley’s public website, www.morganstanley.com/im/shareholderreports. Once filed, the most recent
Form N-PORT will be available without charge, upon request, by calling the Fund at
1-888-322-4675.

16
Information Concerning Trustees and Officers (Unaudited)
Name, Address and
Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee
Other Directorships Held
by Independent Trustee**
Frank L. Bowman
c/o Perkins Coie
LLP
Counsel to the
Independent Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1944
Trustee Since
August
2006
President, Strategic Decisions, LLC
(consulting) (since February 2009);
Director or Trustee of various
Morgan Stanley Funds (since
August 2006); Chairperson of the
Compliance and Insurance
Committee (since October 2015);
formerly, Chairperson of the
Insurance Sub-Committee of the
Compliance and Insurance
Committee (2007-2015); served as
President and Chief Executive
Officer of the Nuclear Energy
Institute (policy organization)
(February 2005-November 2008);
retired as Admiral, U.S. Navy after
serving over 38 years on active duty
including 8 years as Director of the
Naval Nuclear Propulsion Program
in the Department of the Navy and
the U.S. Department of Energy
(1996- 2004); served as Chief of
Naval Personnel (July 1994-
September 1996) and on the Joint
Staff as Director of Political Military
Affairs (June 1992-July 1994);
knighted as Honorary Knight
Commander of the Most Excellent
Order of the British Empire;
awarded the Officier de l’Orde
National du Mérite by the French
Government; elected to the National
Academy of Engineering (2009).
87 Director of Naval and
Nuclear Technologies LLP;
Director Emeritus of the
Armed Services YMCA;
Member of the National
Security Advisory Council
of the Center for U.S.
Global Engagement and a
former member of the CNA
Military Advisory Board;
Chairman of the Board of
Trustees of Fairhaven
United Methodist Church;
Member of the Board of
Advisors of the Dolphin
Scholarship Foundation;
Director of other various
nonprofit organizations;
formerly, Director of BP,
plc (November 2010-May
2019).
Kathleen A. Dennis
c/o Perkins Coie
LLP
Counsel to the
Independent Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1953
Trustee Since
August
2006
Chairperson of the Governance
Committee (since January 2021),
Chairperson of the Liquidity and
Alternatives Sub-Committee of the
Investment Committee (2006-2020)
and Director or Trustee of various
Morgan Stanley Funds (since
August 2006); President,
Cedarwood Associates (mutual fund
and investment management
consulting) (since July 2006);
formerly, Senior Managing Director
of Victory Capital Management
(1993-2006).; Senior Vice President,
Chase Bank (1984-1993).
87 Board Member, University
of Albany Foundation
(2012- present); Board
Member, Mutual Funds
Directors Forum (2014-
present); Director of various
non-profit organizations.
Nancy C. Everett
c/o Perkins Coie
LLP
Counsel to the
Independent Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1955
Trustee
Since
January
2015
Chairperson of the Equity Investment
Committee (since January 2021);
Director or Trustee of various Morgan
Stanley Funds (since January 2015);
Chief Executive Officer, Virginia
Commonwealth University Investment
Company (since November 2015);
Owner, OBIR, LLC (institutional
investment management consulting)
(since June 2014); formerly, Managing
Director, BlackRock, Inc. (February
2011-December 2013) and Chief
Executive Officer, General Motors
Asset Management (a/k/a Promark
Global Advisors, Inc.) (June 2005-
May 2010).
88
Formerly, Member of
Virginia Commonwealth
University School of
Business Foundation (2005-
2016); Member of Virginia
Commonwealth University
Board of Visitors (2013-
2015); Member of
Committee on Directors for
Emerging Markets Growth
Fund, Inc. (2007-2010);
Chairperson of Performance
Equity Management, LLC
(2006-2010); and
Chairperson, GMAM
Absolute Return Strategies
Fund, LLC (2006-2010).

17
Information Concerning Trustees and Officers (Unaudited) (continued)
Name, Address
and Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee
Other Directorships Held by
Independent Trustee**
Jakki L. Haussler
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1957
Trustee
Since
January
2015
Chairman, Opus Capital Group
(since 1996); formerly, CEO, Opus
Capital Group (1996-2019);
Director, Capvest Venture Fund, LP
(May 2000-December 2011);
Partner, Adena Ventures, LP (July
1999-December 2010); Director,
The Victory Funds (February 2005-
July 2008).
88 Vertiv Holdings Co. (VRT)
(August 2022); Director of
Cincinnati Bell Inc. and
Member, Audit Committee and
Chairman, Governance and
Nominating Committee (2008-
2021); Director of Service
Corporation International and
Member, Audit Committee and
Investment Committee;
Director, Barnes Group Inc.
(Since July 2021); Member of
Chase College of Law Centre
for Law and Entrepreneurship;
Board of Advisors; Director of
Best Transport (2005-2019);
Director of Chase College of
Law Board of Visitors;
formerly, Member, University
of Cincinnati Foundation
Investment Committee.
Dr. Manuel H.
Johnson
c/o Johnson Smick
International, Inc.
220 I Street, NE
Suite 200
Washington, D.C.
20002
Birth Year: 1949
Trustee Since July
1991
Senior Partner, Johnson Smick
International, Inc. (consulting firm);
Chairperson of the Fixed Income,
Liquidity and Alternatives
Investment Committee (since
January 2021), Chairperson of the
Investment Committee (2006-2020)
and Director or Trustee of various
Morgan Stanley Funds (since July
1991); Co- Chairman and a founder
of the Group of Seven Council
(G7C) (international economic
commission); formerly,
Chairperson of the Audit
Committee (July 1991- September
2006); Vice Chairman of the Board
of Governors of the Federal
Reserve System and Assistant
Secretary of the U.S. Treasury.
87 Director of NVR, Inc. (home
construction).
Joseph J. Kearns
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1942
Trustee Since
August
1994
(Retired
December
31, 2023)
Senior Adviser, Kearns &
Associates LLC (investment
consulting); Chairperson of the
Audit Committee (2006-2022) and
Director or Trustee of various
Morgan Stanley Funds (since
August 1994); formerly, Deputy
Chairperson of the Audit
Committee (July 2003-September
2006); CFO of the J. Paul Getty
Trust (1982-1999).
88 Director, Rubicon Investments
(since February 2019); Prior to
August 2016, Director of
Electro Rent Corporation
(equipment leasing). Prior to
December 31, 2013, Director
of The Ford Family
Foundation.

18
Information Concerning Trustees and Officers (Unaudited) (continued)
Name, Address
and Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee
Other Directorships Held
by Independent Trustee**
Michael F. Klein
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1958
Trustee
Since
August
2006
Chairperson of the Risk Committee
(since January 2021); Managing
Director, Aetos Alternatives
Management, LP (since March
2000); Co-President, Aetos
Alternatives Management, LP
(since January 2004) and Co-Chief
Executive Officer of Aetos
Alternatives Management, LP
(since August 2013); Chairperson
of the Fixed Income Sub-Committee of the Investment
Committee (2006-2020) and
Director or Trustee of various
Morgan Stanley Funds (since
August 2006); formerly, Managing
Director, Morgan Stanley & Co.
Inc. and Morgan Stanley Dean
Witter Investment Management and
President, various Morgan Stanley
Funds (June 1998-March 2000);
Principal, Morgan Stanley & Co.
Inc. and Morgan Stanley Dean
Witter Investment Management
(August 1997-December 1999).
87 Director of certain
investment funds managed or
sponsored by Aetos
Alternatives Management,
LP; Director of Sanitized AG
and Sanitized Marketing AG
(specialty chemicals).
Patricia A. Maleski
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1960
Trustee
Since
January
2017
Director or Trustee of various
Morgan Stanley Funds (since
January 2017); Managing Director,
JPMorgan Asset Management
(2004-2016); Oversight and
Control Head of Fiduciary and
Conflicts of Interest Program
(2015-2016); Chief Control
Officer—Global Asset
Management (2013-2015);
President, JPMorgan Funds (2010-
2013); Chief Administrative
Officer (2004-2013); various other
positions including Treasurer and
Board Liaison (since 2001).
88
Formerly, Trustee (January
2022 to March 2023),
Treasurer (January 2023 to
March 2023), and Finance
Committee (January 2022 to
March 2023).
W. Allen Reed
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1947
Chair of the
Board and
Trustee
Chair of
the
Boards
since
August
2020 and
Trustee
since
August
2006
Chair of the Boards of various
Morgan Stanley Funds (since
August 2020); Director or Trustee
of various Morgan Stanley Funds
(since August 2006); formerly,
Vice Chair of the Boards of various
Morgan Stanley Funds (January
2020-August 2020); President and
Chief Executive Officer of General
Motors Asset Management;
Chairman and Chief Executive
Officer of the GM Trust Bank and
Corporate Vice President of
General Motors Corporation
(August 1994-December 2005).
87
Formerly, Director of Legg
Mason, Inc. (2006-2019);
and Director of the Auburn
University Foundation
(2010-2015).

19
Information Concerning Trustees and Officers (Unaudited) (continued)
Name, Address
and Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee**
Other Directorships Held
by Independent
Trustee***
Frances L.
Cashman
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of
the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1961
Trustee Trustee
Since
March
2022
Chief Executive Officer, Asset
Management
Portfolio, Delinian Ltd. (financial
information) (May 2021-Present);
Executive Vice President and
various other roles,
Legg Mason & Co. (asset
management)
(2010-2020); Managing Director,
Stifel Nicola (2005-2010).
88 Formerly, Trustee and
Investment Committee
Member, GeorgiaTech
Foundation
(since June 2019); Trustee,
Member of Investment
Committee and Chair
of Marketing Committee,
and Member of Investment
Committee, Loyola
Blakefield (2017-2023);
Trustee, MMI Gateway
Foundation (2017-2023);
Director and
Investment Committee
Member,
Catholic Community
Foundation
Board (2012-2018);
Director and
Investment Committee
Member,
St. Ignatius Loyola
Academy (2011-2017).
Eddie A. Grier
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of
the
Americas
22nd Floor
New York, NY
10036Birth Year:
1955
Trustee Trustee
Since
February
2022
Dean, Santa Clara University
Leavey School of 78
Business (since July 2021);
Dean, Virginia Commonwealth
University School of Business
(2010-2021); President and various
other roles,
Walt Disney Company
(entertainment and media)
(1981-2010)..
88 Director, Witt/Keiffer, Inc.
(executive
search) (since 2016);
Director, NuStar GP, LLC
(energy) (since August
2021);
Director,
Sonida Senior Living, Inc.
(residential
community operator) (2016-
2021);
Director, NVR, Inc.
(homebuilding)
(2013-2020); Director,
Middleburg
Trust Company (wealth
management)
(2014-2019); Director,
Colonial
Williamsburg Company
(2012-2021);
Regent, University of
Massachusetts
Global (since 2021);
Director and Chair
ChildFund International
(2012-2021);
Trustee, Brandman
University
(2010-2021); Director,
Richmond Forum (2013-
2019).
* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.
** The Fund Complex includes (as of December 31, 2023) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley
Investment Management Inc. (the “Adviser”) and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan
Stanley AIP GP LP).
*** This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

20
Information Concerning Trustees and Officers (Unaudited) (continued)
Position(s) Length of
Name, Address and Birth Held with Time Principal Occupation(s)
Year of Executive Officer Registrant Served** During Past 5 Years
John H. Gernon
522 Fifth Avenue
New York, NY 10036
Birth Year: 1963
President and
Principal
Executive
Officer
Since September
2013
President and Principal Executive Officer of the Equity and Fixed Income Funds and the
Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various
money market funds (since May 2014) in the Fund Complex; Managing Director of the
Adviser.
Deidre A. Downes
1633 Broadway
New York, NY 10019
Birth Year: 1977
Chief
Compliance
Officer
Since November
2021
Executive Director of the Adviser (since January 2021) and Chief Compliance officer of
various Morgan Stanley Funds (since November 2021). Formerly, Vice President and
Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020).
Christopher Auffenberg
100 Front Street, Suite 400
West Conshohocken, PA
19428
Birth Year: 1984
Vice
President
Since May
2022
Chief Operating Officer of the Morgan Stanley Alternative Investment Partners Hedge Fund
team and Executive Director of Morgan Stanley Investment Management Inc.
Mary E. Mullin
522 Fifth Avenue
New York, NY 10036
Birth Year:1967
Secretary Since June
1999
Managing Director of the Adviser and various entities affiliated with the Adviser; Secretary
of various Morgan Stanley Funds (since June 1999).
Michael J. Key
522 Fifth Avenue
New York, NY 10036
Birth Year: 1979
Vice President Since June 2017 Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money
market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017);
Managing Director of the Adviser; Head of Product Development for Equity and Fixed
Income Funds (since August 2013).
Francis J. Smith
522 Fifth Avenue
New York, NY 10036
Birth Year: 1965
Treasurer and
Principal
Financial
Officer
Treasurer since
July 2003 and
Principal
Financial Officer
since September
2002
Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer
(since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since
September 2002).
* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.
In addition, the following individuals who are officers of the Adviser or its affiliates serve as assistant secretaries of the Trust: Princess Kludjeson, Kristina B.
Magolis, Francesca Mead and Jill R. Whitelaw.
The Fund’s statement of additional information includes further information about the Fund’s Directors and Officers, and is available without charge by visiting
www.morganstanley.com/im/shareholderreports or upon request by calling 1 (888) 322-4675.

21
Alternative Investment Partners Absolute Return Fund STS
100 Front Street, Suite 400
West Conshohocken, PA 19428
Trustees
W. Allen Reed, Chair of the Board and Trustee
Frank L. Bowman
Frances L. Cashman
Kathleen A. Dennis
Nancy C. Everett
Eddie A. Grier
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia Maleski
Officers
John H. Gernon, President and Principal Executive Officer
Christopher Auffenberg, Vice President
Michael J. Key, Vice President
Deidre A. Downes, Chief Compliance Officer
Francis J.Smith, Treasurer and Principal Financial Officer
Mary E. Mullin, Secretary
Investment Adviser
Morgan Stanley AIP GP LP
100 Front Street, Suite 400
West Conshohocken, PA 19428
Administrator, Custodian, Fund Accounting Agent and Escrow Agent
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Transfer Agent
UMB Fund Services, Inc.
803 W. Michigan Street
Milwaukee, WI 53233
Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
Legal Counsel
Dechert LLP
1095 Avenue of the Americas
New York, NY 10036
Counsel to the Independent
Trustees
Perkins Coie LLP
1155 Avenue of the Americas
New York, New York 10036

ALTERNATIVE INVESTMENT PARTNERS
ABSOLUTE RETURN FUND
Financial Statements with Report of Independent
Registered Public Accounting Firm
For the Year Ended December 31, 2023

Oath and Affirmation
To the best of my knowledge and belief, the information contained in this document is accurate and
complete.
Lee Spector, Executive Director of Morgan Stanley Alternative Investment LLC, the General Partner of
Morgan Stanley AIP GP LP, the Commodity Pool Operator of Alternative Investments Partners Absolute
Return Fund
(This oath is required by Section 4.12(c)(3) of the Commodity Futures Trading Commission Regulations under the
Commodity Exchange Act, as amended.)

Alternative Investment Partners Absolute Return Fund
Financial Statements with Report of
Independent Registered Public Accounting Firm
For the Year Ended December 31, 2023
Contents
Management’s Discussion of Fund Performance (Unaudited)………………………………………1
Report of Independent Registered Public Accounting Firm 4
Audited Financial Statements
Statement of Assets and Liabilities 5
Statement of Operations 6
Statements of Changes in Net Assets 7
Statement of Cash Flows 8
Schedule of Investments 9
Notes to Financial Statements 14
Proxy Voting Policies and Procedures and Proxy Voting Record (Unaudited) 27
Quarterly Portfolio Schedule (Unaudited) 27
U.S. Privacy Policy (Unaudited) 28
Information Concerning Trustees and Officers (Unaudited) 30

1
Alternative Investment Partners Absolute Return Fund
Management’s Discussion of Fund Performance
Investment Objective and Strategy Summary
The Fund’s investment objective is to seek capital appreciation principally through investing in
investment funds (“Investment Funds”) managed by third party investment managers who employ a
variety of “absolute return” investment strategies in pursuit of attractive risk-adjusted returns consistent
with the preservation of capital.
The Fund invests substantially all its assets in private investment funds (commonly referred to as hedge
funds) that are managed by a select group of alternative investment managers that employ different
“absolute return” investment strategies in pursuit of attractive risk-adjusted returns consistent with the
preservation of capital. “Absolute return” refers to a broad class of investment strategies that are managed
without reference to the performance of equity, debt and other markets. “Absolute return” investment
strategies allow unaffiliated third-party investment managers the flexibility to use leveraged or short-sale
positions to take advantage of perceived inefficiencies across the global capital markets. These strategies
are in contrast to the investment programs of “traditional” registered investment companies, such as
mutual funds. Absolute return strategies can be contrasted with “relative return strategies” which
generally seek to outperform a corresponding benchmark equity or fixed income index. The Fund seeks
attractive “risk-adjusted” returns, which are returns adjusted to take into account the volatility of those
returns. The Fund intends to invest in private investment funds that employ the following principal
strategies: relative value strategies, security selection strategies, specialist credit strategies and directional
strategies.
Performance Discussion
Total Returns
One Year Five Years Ten Years
Alternative Investment Partners Absolute Return Fund 6.53% 6.91% 4.96%
Average Annual

2
Alternative Investment Partners Absolute Return Fund
Management’s Discussion of Fund Performance (continued)
Performance Discussion (continued)
The chart below illustrates the growth of a hypothetical $50,000 investment in the Fund over the ten years
ending December 31, 2023.
Performance data quoted represents past performance, which is not predictive of future results, and
current performance may be lower or higher than the figures shown. Total returns do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
During the twelve months ended December 31, 2023, the Fund returned 6.53% (excluding sales load),
outperforming bonds (Bloomberg US Aggregate Bond Index +5.53%) and cash (1 month SOFR +5.20%),
but underperforming equities (S&P 500 Total Return Index +26.29%). The Fund continued its recent
history of generating positive returns untethered from the performance of stocks – the Fund’s 3 year beta
to the S&P 500 Total Return Index at December 31, 2023 is 0.00. In 2022, the Fund’s limited equity beta
benefited the Fund as equities declined; in 2023 the Fund’s limited equity beta resulted in the Fund
receiving little to no benefit from the equity rally.

3
Alternative Investment Partners Absolute Return Fund
Management’s Discussion of Fund Performance (continued)
Performance Discussion (continued)
Each of the Fund’s eleven strategies generated positive results in 2023:
CTA/Managed Futures 0.92%
Distressed 0.55%
Equity L/S High Hedge 2.54%
Equity L/S Opportunistic 0.34%
Event Driven Credit 0.51%
Fixed Income Arbitrage 0.62%
Macro 0.27%
Multi Strategy 0.02%
Other Directional 0.09%
Private Placements 0.45%
Statistical Arbitrage 3.43%
Statistical Arbitrage funds (+9.20% average return in 2023), which carry little to no net equity beta,
generated positive results in each quarter, led by Torus (+15.1%) and Squarepoint Focus (+13.9%).
Equity Long/Short High Hedge funds (+12.27% in 2023), with little equity beta, generated positive
results in each month, profiting from multiple funds. Multi-manager platform funds (Alyeska Fund LP
+16.5%, Holocene Advisors Fund LP +11.5%) generated consistently positive results, largely profiting
from equity trading.
Thank you for your support for the Fund.

4
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of Alternative Investment Partners Absolute Return Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Alternative Investment Partners
Absolute Return Fund (the “Fund”), including the schedule of investments, as of December 31, 2023, and the
related statements of operations and cash flows for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended and the related notes (collectively referred to as the “financial
statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Fund at December 31, 2023, the results of its operations and its cash flows for the year then ended and the
changes in its net assets for each of the two years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an
opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be
independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform,
an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain
an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on
the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such
opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our procedures included confirmation of investments owned as of December 31, 2023, by correspondence with
the custodian, management of the investment funds and others. Our audits also included evaluating the
accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
February 29, 2024

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
5
Alternative Investment Partners Absolute Return Fund
Statement of Assets and Liabilities
December 31, 2023
Assets
Investment in investment funds, at fair value (cost $215,071,421) $ 328,788,076
Cash and cash equivalents 1,153,775
23,871,596
641,896
32,850
Other assets 30,308
Total assets 354,518,501
Liabilities
Line of credit payable 55,521,267
Payable for share repurchases 4,891,270
Management fee payable 738,567
Withholding tax payable 665,825
Shareholder servicing fee payable 547,762
Subscriptions received in advance 50,000
Transfer agent fee payable 3,903
Accrued expenses and other liabilities 355,980
Total liabilities 62,774,574
Net assets $ 291,743,927
Net assets consist of:
Net capital $ 59,905,373
Total distributable earnings (loss) 231,838,554
Net assets $ 291,743,927
Net asset value per share:
127,772.707 shares issued and outstanding, no par value,
1,500,000 registered shares $ 2,283.30
Maximum offering price per share
($2,283.30 plus sales load of 3% of net asset value per share) $ 2,351.80
Due from Alternative Investment Partners Absolute Return Fund STS
Withholding tax credit
Receivable for investments sold

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
6
Alternative Investment Partners Absolute Return Fund
Statement of Operations
For the Year Ended December 31, 2023
Investment income
Dividend $ 225,429
Expenses
Interest expense 3,892,366
Management fees 2,941,798
Shareholder servicing fees 2,187,137
Professional fees 451,955
Accounting and administration fees 183,381
Custody fees 83,917
Registration fees 62,688
Transfer agent fees 46,956
Director fees 13,017
Other 28,124
Total expenses 9,891,339
Net investment income (loss) (9,665,910)
Realized and unrealized gain (loss) from investments
Net realized gain (loss) from investments in investment funds 12,626,975
Net realized gain (loss) from investments 12,626,975
Net change in unrealized appreciation/depreciation on investments
in investment funds 15,592,195
Net change in unrealized appreciation/depreciation on investments 15,592,195
Net realized and unrealized gain (loss) from investments 28,219,170
Net increase (decrease) in net assets resulting from operations $ 18,553,260

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
7
Alternative Investment Partners Absolute Return Fund
Statements of Changes in Net Assets
For the year ended December 31, 2022
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss) $ (8,142,054)
Net realized gain (loss) from investments 29,651,037
Net change in unrealized appreciation/depreciation on investments (4,530,619)
Net increase (decrease) in net assets resulting from operations 16,978,364
Shareholder transactions
Subscriptions (representing 1,114.620 shares) 2,291,485
Repurchases (representing 9,240.215 shares) (19,165,807)
Net increase (decrease) in net assets from shareholder transactions (16,874,322)
Total increase (decrease) in net assets 104,042
Net assets, beginning of year (representing 145,378.340 shares) 294,067,738
Net assets, end of year (representing 137,252.745 shares) $ 294,171,780
Net increase (decrease) in net assets resulting from operations:
Net investment income (loss) $ (9,665,910)
Net realized gain (loss) from investments 12,626,975
Net change in unrealized appreciation/depreciation on investments 15,592,195
Net increase (decrease) in net assets resulting from operations 18,553,260
Shareholder transactions
Subscriptions (representing 895.404 shares) 1,953,003
Repurchases (representing 10,375.442 shares) (22,934,116)
Net increase (decrease) in net assets from shareholder transactions (20,981,113)
Total increase (decrease) in net assets (2,427,853)
Net assets, beginning of year (representing 137,252.745 shares) 294,171,780
Net assets, end of year (representing 127,772.707 shares) $ 291,743,927
For the year ended December 31, 2023

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
8
Alternative Investment Partners Absolute Return Fund
Statement of Cash Flows
For the Year Ended December 31, 2023
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations $ 18,553,260
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash provided by (used in) operating activities:
Net realized (gain) loss from investments in investment funds (12,626,975)
Net change in unrealized (appreciation) depreciation on investments in
investment funds (15,592,195)
Purchase of investments in investment funds (66,931,932)
Proceeds from sale of investments in investment funds 112,326,779
(Increase) decrease in receivable for investments sold (4,282,530)
(Increase) decrease in due from Alternative Investment Partners
Absolute Return Fund STS (79,234)
(Increase) decrease in withholding tax credit 7,269
(Increase) decrease in other assets 5,563
Increase (decrease) in management fee payable (239,228)
Increase (decrease) in shareholder servicing fee payable (179,359)
Increase (decrease) in withholding tax payable 65,786
Increase (decrease) in transfer agent fee payable (7,132)
Increase (decrease) in accrued expenses and other liabilities (282,433)
Net cash provided by (used in) operating activities 30,737,639
Cash flows from financing activities
Proceeds from advances on line of credit 22,200,000
Repayments of advances on line of credit (33,400,000)
Subscriptions 1,953,003
Repurchases (22,934,116)
Increase (decrease) in payable for share repurchases 2,086,433
Increase (decrease) in subscriptions received in advance 50,000
Net cash provided by (used in) financing activities (30,044,680)
Net change in cash and cash equivalents 692,959
Cash and cash equivalents, at beginning of year 460,816
Cash and cash equivalents, at end of year $ 1,153,775
Supplemental disclosure of non-cash flow information:
Non-cash transfer of investment funds $ 11,362,590
Supplemental disclosure of cash flow information:
Cash paid during the year for interest $ 4,190,473

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
9
Alternative Investment Partners Absolute Return Fund
Schedule of Investments
December 31, 2023
Next
First Percent of Percent Available
Acquisition Fair Investment of Net Redemption
Description Date Cost Value Fund Held* Assets Date** Liquidity***
Investment Funds
Commodity Trading Advisors – Managed Futures
Florin Court Capital Fund LP 5/1/2023 $ 10,076,384 $ 10,378,468 15.07% 3.56 % 1/31/2024 Monthly
Squarepoint Core US Feeder LP 7/1/2020 18,500,000 24,549,212 1.63 8.41 3/31/2024 Monthly
Total Commodity Trading Advisors – Managed Futures 28,576,384 34,927,680 11.97
Distressed
Cerberus Partners, LP 11/1/2009 1,218,263 6,982,671 3.29 2.39 (a) (a)
Cerberus SPV, LLC 11/1/2009 752,584 5,762,408 1.89 1.98 (a) (a)
Total Distressed 1,970,847 12,745,079 4.37
Equity Long/Short – High Hedge
Alyeska Fund LP 6/1/2022 14,250,000 18,127,658 0.75 6.22 3/31/2024 Monthly
Holocene Advisors Fund LP 4/1/2017 12,428,356 23,884,580 0.80 8.19 3/31/2024 Quarterly
Magnetar Equity Opportunities Fund LLC 2/1/2011 590,002 6,429,005 24.73 2.20 1/31/2024 Monthly
North Reef Capital LP 11/1/2022 9,700,000 11,294,815 3.87 3/31/2024 Quarterly
Total Equity Long/Short – High Hedge 36,968,358 59,736,058 20.48
Equity Long/Short – Opportunistic
Axon Partners, LP 10/1/2007 4,310,455 1,269,701 0.54 0.44 (a) (a)
Viking Global Equities LP 7/1/2023 13,425,000 14,105,827 0.26 4.83 6/30/2024 Annually
Total Equity Long/Short – Opportunistic 17,735,455 15,375,528 5.27
2.94

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
10
Alternative Investment Partners Absolute Return Fund
Schedule of Investments (continued)
December 31, 2023
Next
First Percent of Percent Available
Acquisition Fair Investment of Net Redemption
Description Date Cost Value Fund Held* Assets Date** Liquidity***
Investment Funds (continued)
Event Driven Credit
Davidson Kempner Institutional Partners, L.P. 5/1/2023 $ 11,729,622 $ 12,207,786 0.14% 4.18 % 3/31/2024 Quarterly
FourSixThree Domestic Fund, LLC 8/1/2023 10,000,000 10,323,362 2.14 3.54 3/31/2024 Quarterly
Olympus Peak Onshore LP 8/1/2020 2,618,713 2,774,800 4.02 0.95 3/31/2024 Quarterly
Total Event Driven Credit 24,348,335 25,305,948 8.67
Fixed Income Arbitrage
Elan Feeder Fund Ltd. 12/1/2023 6,863,405 6,900,468 0.16 2.37 2/29/2024 Monthly
LMR Alpha Rates Trading Fund Ltd. 8/1/2022 7,919,885 9,375,193 0.24 3.21 3/31/2024 Quarterly
Total Fixed Income Arbitrage 14,783,290 16,275,661 5.58
Macro
Broad Reach (US) Fund LP 2/1/2020 7,512,487 12,070,292 12.82 4.13 3/31/2024 Quarterly
D.E. Shaw Oculus Fund, L.L.C. 11/1/2006 4,740,145 20,187,248 0.74 6.92 3/31/2024 Quarterly
Element Capital US Feeder Fund LLC 7/1/2018 8,284,028 7,753,785 0.38 2.66 3/31/2024 Quarterly
Total Macro 20,536,660 40,011,325 13.71
Multi-Strategy
Magnetar Capital Fund LP 1/1/2008 60,291 128,302 4.66 0.04 (a) (a)
QVT SLV Onshore Ltd.(c) 3/1/2012 113,939 265,556 3.44 0.09 (a) (a)
Total Multi-Strategy 174,230 393,858 0.13

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
11
Alternative Investment Partners Absolute Return Fund
Schedule of Investments (continued)
December 31, 2023
Next
First Percent of Percent Available
Acquisition Fair Investment of Net Redemption
Description Date Cost Value Fund Held* Assets Date** Liquidity***
Investment Funds (continued)
Other Directional
BCIM Credit Opportunities, LP (b) 10/1/2014 $ 238,401 $ 1,633,752 5.06 % 0.56 % (a) (a)
Burford Alternative Income Fund LP (b) 12/19/2018 100,215 3,220,443 3.16 1.10 (a) (a)
Burford Alternative Income Fund II LP (b) 7/1/2022 3,043,806 3,366,380 1.98 1.16 (a) (a)
Total Other Directional 3,382,422 8,220,575 2.82
Private Placement
QVT Roiv Hldgs Onshore Ltd.(c) 1/1/2016 633,624 3,837,937 3.54 1.32 (a) (a)
Total Private Placement 633,624 3,837,937 1.32
Statistical Arbitrage
Aquatic Argo Fund LP 11/1/2023 8,500,000 8,393,397 1.86 2.88 3/31/2024 Quarterly
D.E. Shaw Valence Fund, L.L.C. 1/1/2015 8,979,513 29,892,036 0.92 10.25 3/31/2024 Quarterly
Squarepoint Focus US Feeder LP 9/1/2019 12,190,000 20,459,315 0.88 7.01 3/31/2024 Monthly
Torus Feeder 2 LP 5/1/2022 17,050,000 22,059,230 0.52 7.56 3/31/2024 Monthly
Two Sigma Spectrum U.S. Fund, LP 5/1/2011 6,886,479 17,124,797 0.72 5.87 3/31/2024 Quarterly
Voloridge Fund, LP 11/1/2020 12,355,824 14,029,652 0.79 4.81 1/31/2024 Monthly
Total Statistical Arbitrage 65,961,816 111,958,427 38.38
Total Investments in Investment Funds 215,071,421 328,788,076 112.70
$ 215,071,421 328,788,076 112.70
Liabilities in excess of Other Assets (37,044,149) (12.70)
Total Net Assets $ 291,743,927 100.00 %

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
12
Alternative Investment Partners Absolute Return Fund
Schedule of Investments (continued)
December 31, 2023
Detailed information about all of the Investment Funds’ portfolios is not available. Investment Funds are non-income producing.
* May represent percentage ownership of a feeder Investment Fund, which in turn invests in a master Investment Fund. May not reflect year-ended redemptions at Investment Funds.
* * Investments in Investment Funds may be composed of multiple tranches. The Next Available Redemption Date relates to the earliest date after December 31, 2023 that redemption from
a tranche is available. Other tranches may have an available redemption date that is after the Next Available Redemption Date. Redemptions from Investment Funds may be subject to fees.
*** Available frequency of redemptions after initial lock-up period, if any. Different tranches may have different liquidity terms.
(a) A portion or all of the Fund’s interests in the Investment Fund have restricted liquidity. In addition to any redemption proceeds that may have already been
received, the Fund will continue to receive proceeds periodically as the Investment Fund is able to liquidate underlying investments.
(b) The Investment Fund contains capital commitments. The general partner of the Investment Fund may call or distribute capital on a periodic basis.
(c) Fair value was determined by using significant unobservable inputs.
The following table summarizes the initial commitment and unfunded amounts of the Investment Funds as of December 31, 2023, aggregated by investment
strategy:
Investment Funds
Other Directional
BCIM Credit Opportunities, LP $ 14,400,000 $ 11,847,410
Burford Alternative Income Fund LP $ 9,900,000 $ 4,316,428
Burford Alternative Income Fund II LP $ 7,000,000 $ 3,956,194
Commitments Unfunded
This represents a contingent liability, an amount the Investment Fund may call capital for in the future.

The accompanying notes are an integral part of these financial statements and should be used in conjunction herewith.
13
Alternative Investment Partners Absolute Return Fund
Schedule of Investments (continued)
December 31, 2023
Strategy Allocation
Statistical Arbitrage 38.38 %
Equity Long/Short – High Hedge 20.48
Macro 13.71
Commodity Trading Advisors – Managed Futures 11.97
Event Driven Credit 8.67
Fixed Income Arbitrage 5.58
Equity Long/Short – Opportunistic 5.27
Distressed 4.37
Other Directional 2.82
Private Placement 1.32
Multi-Strategy 0.13
Total Investments in Investment Funds 112.70 %
Percent of
Net
Assets

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements
December 31, 2023
14
1. Organization
Alternative Investment Partners Absolute Return Fund (the “Fund”) was organized under the laws of the
State of Delaware as a statutory trust on May 12, 2005. The Fund commenced operations on January 1,
2006 and operates pursuant to an Agreement and Declaration of Trust (the “Trust Deed”). The Fund is
registered under the U.S. Investment Company Act of 1940, as amended (the “1940 Act”), as a closed-end, non-diversified management investment company. The Fund’s investment objective is to seek capital
appreciation principally through investing in investment funds (“Investment Funds”) managed by third-party investment managers who employ a variety of “absolute return” investment strategies in pursuit of
attractive risk-adjusted returns consistent with the preservation of capital. “Absolute return” refers to a
broad class of investment strategies that are managed without reference to the performance of equity,
debt, and other markets. “Absolute return” 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. The Fund may seek to gain investment exposure to certain Investment Funds or to adjust
market or risk exposure by entering into derivative transactions, such as total return swaps, options, and
futures.
Morgan Stanley Alternative Investment Partners LP serves as the Fund’s “Special Shareholder”. The
Special Shareholder shall make such contributions to the capital of the Fund from time to time and has
appointed a partnership representative for the Fund, which is treated as a partnership for U.S. federal
income tax purposes. Morgan Stanley AIP GP LP serves as the Fund’s investment adviser (the
“Investment Adviser”). The Adviser is responsible for providing day-to-day investment management
services to the Fund, subject to the supervision of the Fund’s Board of Trustees (the “Board”). The
Investment Adviser is an affiliate of Morgan Stanley. The Adviser is registered as an investment adviser
under the U.S. Investment Advisers Act of 1940, as amended (the “Advisers Act”), and as a commodity
trading adviser and a commodity pool operator with the Commodity Futures Trading Commission and the
National Futures Association. The Fund’s term is perpetual unless the Fund is otherwise terminated under
the terms of the Trust Deed or unless and until required by law.
The Fund is a “Master” fund in a “Master-Feeder” structure whereby the feeder fund invests substantially
all of its assets in the Fund. As of December 31, 2023, Alternative Investment Partners Absolute Return
Fund STS, an indirect feeder fund to the Fund, represented 59.56% of the Fund’s net assets.
The Board has overall responsibility for monitoring and overseeing the Fund’s investment program and
its management and operations. None of the members of the Board are “interested persons” (as defined by
the 1940 Act) of the Fund or the Investment Adviser.
The Fund offers on a continuous basis through Morgan Stanley Distribution, Inc. (the “Distributor”), an
affiliate of Morgan Stanley, 1,500,000 shares of beneficial interest (“Shares”). The initial closing date
(“Initial Closing Date”) for public offering of Shares was July 1, 2006. Shares were offered until the
Initial Closing Date at an initial offering price of $1,000 per Share, plus any applicable sales load, and
have been continuously offered thereafter for purchase as of the first day of each calendar month at the

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
15
1. Organization (continued)
Fund’s then current net asset value per Share, plus any applicable sales load. The Distributor may enter
into selected dealer agreements with various brokers and dealers (“Selling Agents”), some of which are
affiliates of the Fund, that have agreed to participate in the distribution of the Fund’s Shares. Shares may
also be purchased through any registered investment adviser (a “RIA”) that has entered into an
arrangement with the Distributor for such RIA to recommend Shares to its clients in conjunction with a
“wrap” fee, asset allocation or other management asset program by such RIA.
Shares are sold only to investors (“Shareholders”) that represent that they are “accredited investors”
within the meaning of Rule 501(a) of Regulation D promulgated under the U.S. Securities Act of 1933, as
amended. The minimum initial investment in the Fund by any Shareholder is $50,000. The minimum
additional investment in the Fund by any Shareholder is $25,000. The minimum initial and additional
investments may be reduced by the Fund with respect to certain Shareholders. Shareholders may only
purchase their Shares through the Distributor, a Selling Agent or a RIA.
The Fund may from time to time offer to repurchase Shares (or portions of them) at net asset value
pursuant to written tenders by Shareholders, and each such repurchase offer will generally apply to up to
15% of the net assets of the Fund. Repurchases are made at such times, in such amounts and on such
terms as may be determined by the Board, in its sole discretion. In determining whether the Fund should
offer to repurchase Shares (or portions of them) from Shareholders, the Board will consider the
recommendations of the Adviser as to the timing of such an offer, as well as a variety of operational,
business and economic factors. The Adviser expects that, generally, it will recommend to the Board that
the Fund offers to repurchase Shares (or portions of them) from Shareholders quarterly, on each March
31, June 30, September 30 and December 31. In general, the Fund will initially pay at least 90% of the
estimated value of the repurchased Shares to Shareholders as of the later of: (1) a period of within 30 days
after the value of the Shares to be repurchased is determined, or (2) if the Fund has requested withdrawals
of its capital from any Investment Funds in order to fund the repurchase of Shares, within ten business
days after the Fund has received at least 90% of the aggregate amount withdrawn by the Fund from such
Investment Funds. The remaining amount (the “Holdback Amount”) will be paid promptly after
completion of the annual audit of the Fund and preparation of the Fund’s audited financial statements. As
of December 31, 2023, the Holdback Amount was $365,678, which included any Holdback Amount for
repurchases as of December 31, 2023 and was included in payable for share repurchases in the Statement
of Assets and Liabilities.
2. Significant Accounting Policies
The following significant accounting policies are in conformity with U.S. generally accepted accounting
principles (“US GAAP”). Such policies are consistently followed by the Fund in preparation of its
financial statements. Management has determined that the Fund is an investment company in accordance
with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 946, “Financial Services – Investment Companies”, for the purpose of financial reporting. The
preparation of financial statements in conformity with US GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of increases or
decreases in net assets from operations during the reporting period. Actual results could differ from those
estimates. The Fund’s financial statements are stated in United States dollars.

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
16
2. Significant Accounting Policies (continued)
Portfolio Valuation
The net asset value of the Fund is determined as of the close of business at the end of any fiscal period,
generally monthly, in accordance with the valuation principles set forth below or as may be determined
from time to time pursuant to policies established by the Board.
As of December 31, 2023, all of the Fund’s portfolio was comprised of investments in Investment Funds.
Pursuant to Rule 2a-5 of the Act, the Board had designated the Adviser as its valuation designee. The
valuation designee had responsibility for determining fair value and to make the actual calculations
pursuant to the fair valuation methodologies previously approved by the Board. The Board has approved
procedures pursuant to which the Fund values its investments in Investment Funds at fair value, which
ordinarily will be the amount equal to the Fund’s pro rata interest in the net assets of each such
Investment Fund (“NAV”), as such value is supplied by, or on behalf of, the Investment Fund’s
investment manager from time to time, usually monthly. Values received from, or on behalf of, the
Investment Funds’ respective investment managers are typically estimates only, subject to subsequent
revision by such investment managers. Such values are generally net of management fees and
performance incentive fees or allocations payable to the Investment Funds’ managers or general partners
pursuant to the Investment Funds’ operating agreements. The Investment Funds value their underlying
investments in accordance with policies established by each Investment Fund, as described in each of
their financial statements or offering memoranda. The Fund’s investments in Investment Funds are
subject to the terms and conditions of the respective operating agreements and offering memoranda, as
appropriate.
Some of the Investment Funds may hold a portion of their assets in “side pockets”, which are sub-funds
within the Investment Funds that have restricted liquidity, potentially extending over a much longer
period than the typical liquidity an investment in the Investment Funds may provide. Should the Fund
seek to liquidate its investment in an Investment Fund that maintains these side pockets, the Fund might
not be able to fully liquidate its investment without delay, which could be considerable. In such cases,
until the Fund is permitted to fully liquidate its interest in the Investment Fund, the fair value of its
investment could fluctuate based on adjustments to the value of the side pocket as reported by the
Investment Fund’s investment manager. At December 31, 2023, $1,398,003 of the Fund’s capital was
invested in side pockets maintained by the Investment Funds.
The Adviser has designed ongoing due diligence processes with respect to Investment Funds and their
investment managers, which assist the Adviser in assessing the quality of information provided by, or on
behalf of, each Investment Fund and in determining whether such information continues to be reliable or
whether further investigation is necessary. Such investigation, as applicable, may or may not require the
Adviser to forego its normal reliance on the value supplied by, or on behalf of, such Investment Fund and
to determine independently the fair value of the Fund’s interest in such Investment Fund, consistent with
the Fund’s fair valuation procedures.

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
17
2. Significant Accounting Policies (continued)
Portfolio Valuation (continued)
Where no value is readily available from an Investment Fund or where a value supplied by an Investment
Fund is deemed by the Adviser not to be indicative of its fair value, the Adviser will determine the fair
value of the Investment Fund. In order to determine the fair value of these Investment Funds, the Adviser
has established the Fund of Hedge Funds Valuation Committee (the “Valuation Committee”). The
Valuation Committee is responsible for determining and implementing the Fund’s valuation policies and
procedures, which have been adopted by the Board and are subject to Board supervision. The Valuation
Committee consists of voting members from Morgan Stanley’s accounting, financial reporting and risk
management groups, and non-voting members from portfolio management, legal and compliance groups.
A member of the portfolio management team may attend each Valuation Committee meeting to provide
knowledge, insight, and recommendations on valuation issues. The portfolio management team will
recommend to the Valuation Committee a fair value for an investment using valuation techniques such as
a market approach or income approach. In applying these valuation techniques, the portfolio management
team uses their knowledge of the Investment Fund, industry expertise, information obtained through
communication with the Investment Fund’s investment manager, and available relevant information as it
considers material. After consideration of the portfolio management team’s recommendation, the
Valuation Committee will determine, in good faith, the fair value of the Investment Fund. The Valuation
Committee shall meet at least annually to analyze changes in fair value measurements. Because of the
inherent uncertainty of valuation, the fair values of the Fund’s investments may differ significantly from
the values that would have been used had a ready market for these Investment Funds held by the Fund
been available.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash held on deposit and short term highly liquid investments that
are readily convertible to known amounts of cash and have maturities of three months or less. Investments
in money markets are valued at fair value using the net asset value as the price and are categorized as
Level 1 securities as described in Note 4. As of December 31, 2023, cash equivalents consisted of
investments in money market funds valued at $857,673. The Fund maintains cash held on deposit at one
or more financial institutions. The Fund is subject to credit risk should a financial institution be unable to
fulfill its obligations.
Income Recognition and Expenses
The Fund recognizes income and expenses on an accrual basis. Income, expenses, and realized and
unrealized gains and losses are recorded monthly. The changes in Investment Funds’ fair values are
included in net change in unrealized appreciation/depreciation on investments in Investment Funds in the
Statement of Operations. Realized gain (loss) from investments in Investment Funds is calculated using
specific identification.

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
18
2. Significant Accounting Policies (continued)
Income and Withholding Taxes
No provision for federal, state, or local income taxes is required in the financial statements. In accordance
with the U.S. Internal Revenue Code of 1986, as amended, each of the Shareholders and Special
Shareholder is to include its respective share of the Fund’s realized profits or losses in its individual tax
returns. The Fund files tax returns with the U.S. Internal Revenue Service and various states. The Fund
expects to be treated as a partnership for U.S. federal income tax purposes.
The Fund is required to withhold up to 30% U.S. tax from U.S. source dividends and 21% (37% for non-corporate, non-U.S. investors) U.S. tax from effectively connected income allocable to its non-U.S.
investors and remit those amounts to the U.S. Internal Revenue Service on behalf of the non-U.S.
investors. The rate of withholding is generally the rate at which the particular non-U.S. Shareholder is
subject to U.S. federal income tax. The non-U.S. Shareholders are obligated to indemnify the Fund for
any taxes that the Fund is required to withhold as well as any interest or penalties. Withholding taxes
result in a repurchase of Shares from the Fund for any non-U.S. Shareholders who incur the withholding.
For the year ended December 31, 2023, the Fund recorded an estimated tax withholding amount of
$873,644 which is included in repurchases in the Statements of Changes in Net Assets. The Special
Shareholder made no contributions to the capital of the Fund for U.S. Federal income tax purposes during
this period.
The Fund has concluded there are no significant uncertain tax positions that would require recognition in
the financial statements as of December 31, 2023. If applicable, the Fund recognizes interest accrued
related to unrecognized tax benefits in interest expense and penalties in other expenses in the Statement of
Operations. Generally, open tax years under potential examination vary by jurisdiction, but at least each
of the tax years in the four-year period ended December 31, 2023, remains subject to examination by
major taxing authorities.
3. Financial Instruments with Off-Balance Sheet Risk
In the normal course of business, the Investment Funds in which the Fund invests may trade various
financial instruments and enter into various investment activities with off-balance sheet risk. These
include, but are not limited to, short selling activities, written option contracts, and swaps. The Fund’s
risk of loss in each Investment Fund is limited to the value of the Fund’s interest in each Investment Fund
as reported by the Fund.
4. Fair Value of Financial Instruments
The fair value of the Fund’s assets and liabilities that qualify as financial instruments approximates the
carrying amounts presented in the Statement of Assets and Liabilities. Fair value is the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The Fund uses a three-tier hierarchy to distinguish between (a)
inputs that reflect the assumptions market participants would use in pricing an asset or liability developed
based on market data obtained from sources independent of the reporting entity (observable inputs) and

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
19
4. Fair Value of Financial Instruments (continued)
(b) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants
would use in pricing an asset or liability developed based on the best information available in the
circumstances (unobservable inputs) and to establish classification of fair value measurements for
disclosure purposes. Various inputs are used in determining the fair value of the Fund’s investments.
The inputs are summarized in the three broad levels listed below:
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments), or
short-term investments that are valued at amortized cost
• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining
the fair value of investments)
The inputs or methodology used for valuing investments are not necessarily an indication of the risk
associated with investing in those investments.
The units of account that are valued by the Fund are its interests in the Investment Funds or other
financial instruments and not the underlying holdings of such Investment Funds or other financial
instruments. Thus, the inputs used by the Fund to value its investments in each of the Investment Funds or
other financial instruments may differ from the inputs used to value the underlying holdings of such
Investment Funds or other financial instruments.
The following is a summary of the inputs used for investment tranches as of December 31, 2023 in
valuing the Fund’s investments carried at fair value:
Level 1 Level 2 Level 3 Investments measured Total
Investments in Investment Funds at NAV*
Commodity Trading Advisors
– Managed Futures $ – $ – $ – $ 34,927,680 $ 34,927,680
Distressed – – – 12,745,079 12,745,079
Equity Long/Short – High Hedge – – – 59,736,058 59,736,058
Equity Long/Short – Opportunistic – – – 15,375,528 15,375,528
Event Driven Credit – – – 25,305,948 25,305,948
Fixed Income Arbitrage – – – 16,275,661 16,275,661
Macro – – – 40,011,325 40,011,325
Multi-Strategy – – 265,556 128,302 393,858
Other Directional – – – 8,220,575 8,220,575
Private Placement – – 3,837,937 – 3,837,937
Statistical Arbitrage – – – 111,958,427 111,958,427
Total Investments in Investment Funds $ – $ – $ 4,103,493 $ 324,684,583 $ 328,788,076
*All investments that are measured at fair value using the NAV (or its equivalent) as the practical expedient have not been
classified in the fair value hierarchy. The fair value amounts presented in this column are intended to permit reconciliation of the
fair value hierarchy to the amounts presented in the Statement of Financial Condition.

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
20
4. Fair Value of Financial Instruments (continued)
The following is a reconciliation of Level 3 investment tranches for the year ended December 31, 2023:
Balance, Transfers Transfers Sales/ Net realized Net change in unrealized Balance,
Investment Funds January 1, 2023 into Level 3 out of Level 3 Purchases Distributions gain (loss) appreciation/depreciation December 31, 2023
Multi-Strategy $ 326,310 $ – $ – $ – $ (98,955) $ 50,692 $ (12,491) $ 265,556
Private Placement 2,985,286 – – – (451,141) 375,907 927,885 3,837,937
Total Investment Funds $ 3,311,596 $ – $ – $ – $ (550,096) $ 426,599 $ 915,394 $ 4,103,493
The following is a summary of quantitative information about significant unobservable valuation inputs
for Level 3 investments held as of December 31, 2023.
Fair Value at
12/31/2023 Valuation technique(s) Unobservable input Range (weighted average)
Investment Funds
Multi-Strategy $ 265,556 Market approach Discount for lack of marketability 6%
Private Placement 3,837,937 Market approach Discount for lack of marketability 17%
Total Investment Funds $ 4,103,493
5. Investments in Investment Funds
The following table summarizes the fair value and liquidity terms of the Investment Funds as of
December 31, 2023, aggregated by investment strategy:
Redemption Redemption
Frequency Notice Period
Investment Funds (if applicable) (if applicable)
Commodity Trading Advisors
– Managed Futures (a) $ 34,927,680 Monthly 30-65 days
Distressed (b) 12,745,079 Not Applicable Not Applicable
Equity Long/Short – High Hedge (c) 59,736,058 Monthly to Quarterly 30-90 days
Equity Long/Short – Opportunistic (d) 15,375,528 Annually 45 days
Event Driven Credit (e) 25,305,948 Quarterly 65-90 days
Fixed Income Arbitrage (f) 16,275,661 Monthly to Quarterly 45-90 days
Macro (g) 40,011,325 Quarterly 75-90 days
Multi-Strategy (h) 393,858 Not Applicable Not Applicable
Other Directional (i) 8,220,575 Not Applicable Not Applicable
Private Placement (j) 3,837,937 Not Applicable Not Applicable
Statistical Arbitrage (k) 111,958,427 Monthly to Quarterly 30-90 days
Total Investment Funds $ 328,788,076
Fair Value

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
21
5. Investments in Investment Funds (continued)
(a) Investment Funds in this strategy invest in a variety of futures contracts, including currencies, interest rates, stocks, stock market indexes,
derivatives, and commodities. These Investment Funds build quantitative models to price futures and then take long and short positions in
the futures.
(b) Investment Funds in this strategy invest in, and may sell short, the securities of companies where the security’s price have been, or is
expected to be, affected by a distressed situation such as a bankruptcy or corporate restructuring. Investment Fund tranches representing
4.37% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is uncertain.
(c) Investment Funds in this strategy seek to profit by exploiting pricing inefficiencies between related equity securities, neutralizing exposure
to market risk by combining long and short positions.
(d) Investment Funds in this strategy consist of a core holding of long equities hedged at all times with short sales of stocks or stock index
options. Some of the Investment Funds’ respective investment managers maintain a substantial portion of assets within a hedged structure
and commonly employ leverage. Investment Fund tranches representing 0.44% of the Fund’s net assets have restricted liquidity. The
remaining restriction period for such Investment Fund tranches is uncertain.
(e) Investment Funds in this strategy invest in debt securities created by significant transactional events, such as spin-offs, mergers and
acquisitions, bankruptcy reorganizations, and recapitalizations.
(f) The Investment Funds in this strategy seek to profit by exploiting pricing differences between related fixed income securities and their
derivatives, neutralizing exposure to market risk by combining long and short positions.
(g) Investment Funds in this strategy invest by making leveraged bets on anticipated price movements of stock markets, interest rates, foreign
exchange and physical commodities
(h) Investment Funds in this strategy seek to exploit pricing differentials between various issues of mortgage-related bonds. Investment Fund
tranches representing 0.13% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund
tranches is uncertain.
(i) Investment Funds in this strategy invest in a broad group of directional strategies, often with little hedging. Investment Fund tranches
representing 2.82% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is
uncertain.
(j) The Investment Fund in this strategy invest primarily in private (non-public) securities with limited liquidity. Investment Fund tranches
representing 1.32% of the Fund’s net assets have restricted liquidity. The remaining restriction period for such Investment Fund tranches is
uncertain.
(k) Investment Funds in this strategy profit from temporary pricing discrepancies between related securities. This irregularity offers an
opportunity to go long the cheaper security and to short the more expensive one in an attempt to profit as the prices of the two revert to
their norm, or mean.
As of December 31, 2023, 9.08% of the Fund’s net assets were invested in Investment Funds with
restricted liquidity or with the next available redemption date extending beyond one year from December
31, 2023.
For the year ended December 31, 2023, aggregate purchases and proceeds from sales of investments in
Investment Funds were $66,931,932 and $112,326,779 respectively.
The cost of investments for federal income tax purposes is adjusted for items of taxable income or loss
allocated to the Fund from the Investment Funds. The allocated taxable income or loss is reported to the
Fund by the Investment Funds on Schedules K-1. Such tax adjustments for the year ended December 31,
2023 will be made once the Fund has received all 2019 Schedules K-1 from the Investment Funds.

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
22
6. Investment Receivables and Prepaid Investments
As of December 31, 2023, $23,871,596 was due to the Fund from Investment Funds. The receivable
amount represents the fair value of certain Investment Fund tranches, net of management fees and
incentive fees/allocations, that were redeemed by the Fund at year-end or holdback amounts that will be
received from certain Investment Funds. Substantially all of the receivable balance was collected
subsequent to the balance sheet date.
Prepaid investments in Investment Funds represent amounts transferred to Investment Funds prior to
year-end relating to investments to be made effective January 1, 2024, pursuant to each Investment
Fund’s operating agreements. As of December 31, 2023, the Fund had no prepaid investments in
Investment Funds.
7. Management Fee, Related Party Transactions and Other
The Fund bears all expenses related to its investment program, including, but not limited to, expenses
borne indirectly through the Fund’s investments in the underlying Investment Funds.
In consideration of the advisory and other services provided by the Investment Adviser to the Fund, the
Fund pays the Investment Adviser a monthly management fee of 0.083% (1.00% on an annualized basis)
of the Fund’s month end net asset value. The management fee is an expense paid out of the Fund’s assets
and is computed based on the value of the net assets of the Fund as of the close of business on the last
business day of each month, before adjustments for any repurchases effective on that day. The
management fee is in addition to the asset-based fees and incentive fees or allocations charged by the
underlying Investment Funds and indirectly borne by Shareholders in the Fund. For the year ended
December 31, 2023, the Fund incurred management fees of $2,941,798, of which $738,567 was payable
to the Investment Adviser at December 31, 2023.
The Distributor and Selling Agents may charge Shareholders a sales load of up to 3% of the
Shareholder’s purchase. The Distributor or a Selling Agent may, in its discretion, waive the sales load for
certain investors. In addition, purchasers of Shares in conjunction with certain “wrap” fee, asset allocation
or other managed asset programs sponsored by a RIA, including an affiliate of the Adviser, or Morgan
Stanley and its affiliates (including the Adviser) and the directors, partners, principals, officers and
employees of any such RIA or any of the Adviser and its affiliates may not be charged a sales load.
The Fund pays the Distributor, and the Distributor pays each financial institution, broker-dealer and other
industry professional (collectively, “Service Agents”) that enters into a Distribution and Shareholder
Servicing Agreement with the Distributor, a monthly shareholder servicing fee of up to 0.0625% (0.75%
on an annualized basis) of the net asset value of the outstanding Shares attributable to the clients of the
Service Agent who are invested in the Fund through the Service Agent. In exchange for this fee, the
Service Agent provides distribution, marketing and/or sales support services, including making the Fund
available as an investment option to the Service Agent’s clients, offering the Fund as an option on any
distribution “platform” the Service Agent administers, making information about the Fund available to
clients, including the Fund’s Prospectus, statement of additional information and sales literature, engaging
in education or marketing activities about the Fund and its characteristics and retaining or utilizing the
services of sales professionals, consultants and other personnel to assist in marketing shares of the Fund

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
23
7. Management Fee, Related Party Transactions and Other (continued)
to clients. For the year ended December 31, 2023, the Fund incurred shareholder servicing fees of
$2,187,137, of which $547,762 was payable to the Distributor at December 31, 2023.
State Street Bank and Trust Company (“State Street”) provides accounting and administrative services to
the Fund. Under an administrative services agreement, State Street is paid an administrative fee,
computed and payable monthly at an annual rate ranging from 0.045% to 0.075%, based on the aggregate
monthly net assets of certain Morgan Stanley products, including the Fund, for which State Street serves
as the administrator.
State Street also serves as the Fund’s custodian. Under a custody services agreement, State Street is paid a
custody fee monthly at an annual rate of 0.020%, based on (i) the aggregate monthly net assets of certain
Morgan Stanley products, including the Fund, for which State Street serves as the custodian, and (ii)
investment purchases and sales activity related to the Fund.
The Fund is charged directly for certain reasonable out-of-pocket expenses related to the accounting,
administrative and custodial services provided by State Street to the Fund.
The Fund has a deferred compensation plan (the “DC Plan”) that allows each member of the Board that is
not an affiliate of Morgan Stanley to defer payment of all, or a portion, of the fees he or she receives for
serving on the Board throughout the year. Each eligible member of the Board generally may elect to have
the deferred amounts invested in the DC Plan in order to earn a return equal to the total return on one or
more of the Morgan Stanley products that are offered as investment options under the DC Plan.
Investments in the DC Plan, unrealized appreciation/depreciation on such investments and distributions
received from these investments are recorded with an offsetting increase/decrease in the deferred
compensation obligation and do not affect the net asset value of the Fund. At December 31, 2023, the
Fund’s proportionate share of assets attributable to the DC Plan was $15,842, which is included in the
Statement of Assets and Liabilities under other assets and the deferred compensation obligation under
accrued expenses and other liabilities.
UMB Fund Services, Inc. serves as the Funds transfer agent. Transfer agent fees are payable monthly
based on an annual Fund base fee, annual per Shareholder account charges, and out-of-pocket expenses
incurred by the transfer agent on the Fund’s behalf.
8. Borrowings
Effective October 22, 2018, the Fund entered into a committed credit agreement with Bank of America,
N.A. for a revolving line of credit (the “Facility”). The maximum availability under the Facility is the
lesser of $85,000,000 commitment amount (“Commitment Amount”) or 30% of the Fund’s adjusted net
assets, as defined in the credit agreement, subject to specific asset-based covenants. The Fund will pay a
minimum utilization fee when the borrowings are less than 60% of the Commitment Amount. Prior to
September 29, 2023, the interest rate on borrowings was the Daily Simple SOFR rate plus 1.40%.
Effective September 29, 2023, the interest rate is the Daily Simple SOFR rate plus 1.50%. Under the
terms of the Facility, borrowings are repayable no later than September 26, 2025, the termination date of
the Facility. At December 31, 2023, there was $55,521,267 outstanding against the Facility. For the year

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
24
8. Borrowings (continued)
ended December 31, 2023, the Fund incurred interest expense of $3,892,366 in connection with the
Facility. Borrowings are secured by the Fund’s investments in Investment Funds. Detailed below is
summary information concerning the borrowings:
# of Days Outstanding Average Daily Balance Annualized Weighted Average Rate
365 $60,234,418 6.47%
9. Market Risk
The value of an investment in the Fund is based on the values of the Fund’s investments, which change
due to economic and other events that affect markets generally, as well as those that affect particular
regions, countries, industries, companies or governments. The risks associated with these developments
may be magnified if certain social, political, economic and other conditions and events adversely interrupt
the global economy and financial markets. Securities in the Fund’s portfolio may underperform due to
inflation (or expectations for inflation), interest rates, global demand for particular products or resources,
natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics),
terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global
events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health
emergencies, social and political (including geopolitical) discord and tensions or debt crises and
downgrades, among others, may result in market volatility and may have long term effects on both the
U.S. and global financial markets. It is difficult to predict when events affecting the U.S. or global
financial markets may occur, the effects that such events may have and the duration of those effects
(which may last for extended periods). These events may negatively impact broad segments of businesses
and populations and have a significant and rapid negative impact on the performance of the Fund’s
investments, and exacerbate pre-existing risks to the Fund. The occurrence, duration and extent of these
or other types of adverse economic and market conditions and uncertainty over the long term cannot be
reasonably projected or estimated at this time. The ultimate impact of public health emergencies or other
adverse economic or market developments and the extent to which the associated conditions impact the
Fund and its investments will also depend on other future developments, which are highly uncertain,
difficult to accurately predict and subject to change at any time. The financial performance of the Fund’s
investments (and, in turn, the Fund’s investment results) as well as their liquidity may be adversely
affected because of these and similar types of factors and developments, which may in turn impact
valuation, the Fund’s ability to sell securities and/or its ability to meet redemptions.
10. LIBOR Discontinuance or Unavailability Risk
The Fund’s investments, payment obligations and financing terms may be based on floating rates, such as
the London Interbank Offered Rates (collectively, “LIBOR”), Euro Interbank Offered Rate, Secured
Overnight Financing Rate (“SOFR”) and other similar types of reference rates (each, a “Reference Rate”).
These Reference Rates are generally intended to represent the rate at which contributing banks may
obtain short-term borrowings from each other within certain financial markets. London Interbank Offered
Rate (“LIBOR”) was the basic rate of interest used in lending transactions between banks on the London
interbank market and has been widely used as a reference for setting the interest rate on loans globally. As

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
25
10. LIBOR Discontinuance or Unavailability Risk (continued)
a result of benchmark reforms, publication of most LIBOR settings has ceased. Various financial industry
groups have been planning for the transition from LIBOR and certain regulators and industry groups have
taken actions to establish alternative reference rates (e.g., the SOFR, which measures the cost of overnight
borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities and is
intended to replace U.S. dollar LIBORs with certain adjustments). These developments could negatively
impact financial markets in general and present heightened risks, including with respect to the Fund’s
investments. As a result of the uncertainty and developments relating to the transition process,
performance, price volatility, liquidity and value of the Fund and its assets may be adversely affected.
11. Contractual Obligations
The Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure
under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to
these contracts and expects the risk of loss to be remote.

Alternative Investment Partners Absolute Return Fund
Notes to Financial Statements (continued)
26
12. Financial Highlights
The following represents per Share data, ratios to average net assets, and other financial highlights
information for Shareholders.
For the Year For the Year For the Year For the Year For the Year
Ended Ended Ended Ended Ended
December 31, December 31, December 31, December 31, December 31,
2023 2022 2021 2020 2019
For a Share outstanding throughout the year:
Net asset value, beginning of year $ 2,143.29 $ 2,022.78 $ 1,912.34 $ 1,737.31 $ 1,634.99
Net investment income (loss) (a)
(72.43) (57.30) (45.28) (42.07) (44.21)
Net realized and unrealized gain (loss)
from investments 212.44 177.81 155.72 217.10 146.53
Net increase (decrease) resulting
from operations 140.01 120.51 110.44 175.03 102.32
Net asset value, end of year $ 2,283.30 $ 2,143.29 $ 2,022.78 $ 1,912.34 $ 1,737.31
Total return (b) 6.53% 5.96% 5.78% 10.07% 6.26%
Ratio of total expenses (c) 3.37% 2.79% 2.33% 2.41% 2.70%
Ratio of net investment income (loss) (d) (3.29%) (2.77%) (2.32%) (2.40%) (2.61%)
Portfolio turnover 19% 25% 11% 23% 33%
Senior security, end of year (000s) $ 55,521 $ 66,721 $ 68,896 $ 74,996 $ 77,246
$ 6,255 $ 5,409 $ 5,268 $ 5,300 $ 5,512
Net assets, end of year (000s) $ 291,744 $ 294,172 $ 294,068 $ 322,500 $ 348,561
Asset coverage per $1,000 of senior security
principal amount (e)
(a) Calculated based on the average shares outstanding methodology.
(b) Total return assumes a subscription of a Share in the Fund at the beginning of the year indicated and a repurchase of the Share on the last
day of the year, and does not reflect the impact of the sales load, if any, incurred when subscribing to the Fund.
(c) Ratio does not reflect the Fund’s proportionate share of the expenses of the Investment Funds.
(d) Ratio does not reflect the Fund’s proportionate share of the income and expenses of the Investment Funds.
(e) Represents asset coverage per $1,000 of indebtedness calculated by subtracting the Fund’s liabilities and indebtedness not represented by
senior securities from the Fund’s total assets, then the result divided by the aggregate amount of the Fund’s senior securities representing
indebtedness, and multiplying the result by 1,000.
The above ratios and total returns have been calculated for the Shareholders taken as a whole. An
individual Shareholder’s return and ratios may vary from these returns and ratios due to the timing of
Share transactions and withholding tax allocation, as applicable.
13. Subsequent Events
Unless otherwise stated throughout the Notes to Financial Statements, the Fund noted no subsequent
events that require disclosure in or adjustment to the financial statements through the date that the
financial statements were available to be issued.

Alternative Investment Partners Absolute Return Fund
27
Proxy Voting Policies and Procedures and Proxy Voting Record (Unaudited)
If applicable, a copy of (1) the Fund’s policies and procedures with respect to the voting of proxies
relating to the Fund’s investments; and (2) how the Fund voted proxies relating to Fund investments
during the most recent 12 months period ended December 31, is available without charge, upon request,
by calling the Fund at 1-888-322-4675. This information is also available on the Securities and Exchange
Commission’s website at http://www.sec.gov.
Quarterly Portfolio Schedule (Unaudited)
The Fund also files a complete schedule of portfolio holdings with the Securities and Exchange
Commission for the Fund’s first and third fiscal quarters on Form N-PORT. The Fund’s Forms N-PORT
are available on the Securities and Exchange Commission’s website at http://www.sec.gov. and Morgan
Stanley’s public website, www.morganstanley.com/im/shareholderreports. Once filed, the most recent
Form N-PORT will be available without charge, upon request, by calling the Fund at
1-888-322-4675.

Alternative Investment Partners Absolute Return Fund
An Important Notice Concerning Our U.S. Privacy Policy (Unaudited)
28
WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why? Financial companies choose how they share your personal information. Federal law gives
consumers the right to limit some but not all sharing. Federal law also requires us to tell you
how we collect, share, and protect your personal information. Please read this notice
carefully to understand what we do.
What? The types of personal information we collect and share depend on the product or service you
have with us. This information can include:
▪ Social Security number and income
▪ investment experience and risk tolerance
▪ checking account number and wire transfer instructions
How? All financial companies need to share customers’ personal information to run their everyday
business. In the section below, we list the reasons financial companies can share their
customers’ personal information; the reasons MSIM chooses to share; and whether you
can limit this sharing.
Reasons we can share your personal
information Does MSIM
share?
Can you limit this
sharing?
For our everyday business purposes— such as to
process your transactions, maintain your account(s),
respond to court orders and legal investigations, or
report to credit bureaus
Yes No
For our marketing purposes—
to offer our products and services to you
Yes No
For joint marketing with other financial
companies
No We don’t share
For our affiliates’ everyday business
purposes—
information about your transactions and
experiences
Yes No
For our affiliates’ everyday business
purposes—
information about your creditworthiness
No We don’t share
For our affiliates to market to you No We don’t share
For nonaffiliates to market to you No We don’t share
Questions? Call toll-free (844) 312-6327 or email:
[email protected]
FACTS

29
An Important Notice Concerning Our U.S. Privacy Policy (Unaudited)
(continued)
Who we are
Who is providing this
notice?
Morgan Stanley Investment Management, Inc. and its affiliated registered
investment advisers, registered broker-dealers, and registered and
unregistered funds (“MSIM”)
What we do
How does MSIM
protect my
personal
information?
To protect your personal information from unauthorized access and use, we use
security measures that comply with federal law. These measures include
computer safeguards and secured files and buildings. We have policies
governing the proper handling of customer information by personnel and
requiring third parties that provide support to adhere to appropriate security
standards with respect to such information.
How does MSIM
collect my
personal
information?
We collect your personal information, for example, when you
▪ open an account or make deposits or withdrawals from your account
▪ buy securities from us or make a wire transfer
▪ give us your contact information
We also collect your personal information from others, such as credit bureaus,
affiliates, or other companies.
Why can’t I limit all
sharing?
Federal law gives you the right to limit only
▪ sharing for affiliates’ everyday business purposes—information about your
creditworthiness
▪ affiliates from using your information to market to you
▪ sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit
sharing. See below for more on your rights under state law.
Definitions
Affiliates Companies related by common ownership or control. They can be financial and
nonfinancial companies.
▪ Our affiliates include companies with a Morgan Stanley name and financial
companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley
& Co.
Nonaffiliates Companies not related by common ownership or control. They can be financial
and nonfinancial companies.
▪ MSIM does not share with nonaffiliates so they can market to you.
Joint marketing A formal agreement between nonaffiliated financial companies that together
market financial products or services to you.
▪ MSIM doesn’t jointly market
Other important information
Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents
with Nonaffiliates unless you provide us with your written consent to share such information.
California: Except as permitted by law, we will not share personal information we collect about
California residents with Nonaffiliates and we will limit sharing such personal information with our Affiliates to
comply with California privacy laws that apply to us.

30
Information Concerning Trustees and Officers (Unaudited)
Name, Address and
Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee
Other Directorships Held by
Independent Trustee**
Frank L. Bowman
c/o Perkins Coie
LLP
Counsel to the
Independent Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1944
Trustee Since
August
2006
President, Strategic Decisions, LLC
(consulting) (since February 2009);
Director or Trustee of various
Morgan Stanley Funds (since August
2006); Chairperson of the
Compliance and Insurance
Committee (since October 2015);
formerly, Chairperson of the
Insurance Sub-Committee of the
Compliance and Insurance
Committee (2007-2015); served as
President and Chief Executive
Officer of the Nuclear Energy
Institute (policy organization)
(February 2005-November 2008);
retired as Admiral, U.S. Navy after
serving over 38 years on active duty
including 8 years as Director of the
Naval Nuclear Propulsion Program
in the Department of the Navy and
the U.S. Department of Energy
(1996- 2004); served as Chief of
Naval Personnel (July 1994-
September 1996) and on the Joint
Staff as Director of Political Military
Affairs (June 1992-July 1994);
knighted as Honorary Knight
Commander of the Most Excellent
Order of the British Empire;
awarded the Officier de l’Orde
National du Mérite by the French
Government; elected to the National
Academy of Engineering (2009).
87 Director of Naval and Nuclear
Technologies LLP; Director
Emeritus of the Armed Services
YMCA; Member of the
National Security Advisory
Council of the Center for U.S.
Global Engagement and a
former member of the CNA
Military Advisory Board;
Chairman of the Board of
Trustees of Fairhaven United
Methodist Church; Member of
the Board of Advisors of the
Dolphin Scholarship
Foundation; Director of other
various nonprofit organizations;
formerly, Director of BP, plc
(November 2010-May 2019).
Kathleen A. Dennis
c/o Perkins Coie
LLP
Counsel to the
Independent Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1953
Trustee Since
August
2006
Chairperson of the Governance
Committee (since January 2021),
Chairperson of the Liquidity and
Alternatives Sub-Committee of the
Investment Committee (2006-2020)
and Director or Trustee of various
Morgan Stanley Funds (since
August 2006); President,
Cedarwood Associates (mutual fund
and investment management
consulting) (since July 2006);
formerly, Senior Managing Director
of Victory Capital Management
(1993- 2006); Senior Vice President,
Chase Bank (1984-1993).
87 Board Member, University of
Albany Foundation (2012-
present); Board Member,
Mutual Funds Directors Forum
(2014- present); Director of
various non-profit
organizations.
Nancy C. Everett
c/o Perkins Coie
LLP
Counsel to the
Independent Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1955
Trustee Since
January
2015
Chairperson of the Equity
Investment Committee (since
January 2021); Director or Trustee
of various Morgan Stanley Funds
(since January 2015); Chief
Executive Officer, Virginia
Commonwealth University
Investment Company (since
November 2015); Owner, OBIR,
LLC (institutional investment
management consulting) (since June
2014); formerly, Managing Director,
BlackRock, Inc. (February 2011-
December 2013) and Chief
Executive Officer, General Motors
Asset Management (a/k/a Promark
Global Advisors, Inc.) (June 2005-
May 2010).
88 Formerly, Member of Virginia
Commonwealth University
School of Business Foundation
(2005-2016); Member of
Virginia Commonwealth
University Board of Visitors
(2013-2015); Member of
Committee on Directors for
Emerging Markets Growth
Fund, Inc. (2007-2010);
Chairperson of Performance
Equity Management, LLC
(2006-2010); and Chairperson,
GMAM Absolute Return
Strategies Fund, LLC (2006-
2010).

31
Information Concerning Trustees and Officers (Unaudited) (continued)
Name, Address
and Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee
Other Directorships Held by
Independent Trustee**
Jakki L. Haussler
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1957
Trustee Since
January
2015
Chairman, Opus Capital Group
(since 1996); formerly, CEO, Opus
Capital Group (1996-2019);
Director, Capvest Venture Fund, LP
(May 2000-December 2011);
Partner, Adena Ventures, LP (July
1999-December 2010); Director,
The Victory Funds (February 2005-
July 2008).
88 Vertiv Holding Co. (VRT)
(August 2022); Director of
Cincinnati Bell Inc. and
Member, Audit Committee and
Chairman, Governance and
Nominating Committee (2008-
2021); Director of Service
Corporation International and
Member, Audit Committee and
Investment Committee;
Director, Barnes Group Inc.
(Since July 2021); Member of
Chase College of Law Centre
for Law and Entrepreneurship;
Board of Advisors; Director of
Best Transport (2005-2019);
Director of Chase College of
Law Board of Visitors;
formerly, Member, University
of Cincinnati Foundation
Investment Committee.
Dr. Manuel H.
Johnson
c/o Johnson Smick
International, Inc.
220 I Street, NE
Suite 200
Washington, D.C.
20002
Birth Year: 1949
Trustee Since July
1991
Senior Partner, Johnson Smick
International, Inc. (consulting firm);
Chairperson of the Fixed Income,
Liquidity and Alternatives
Investment Committee (since
January 2021), Chairperson of the
Investment Committee (2006-2020)
and Director or Trustee of various
Morgan Stanley Funds (since July
1991); Co- Chairman and a founder
of the Group of Seven Council
(G7C) (international economic
commission); formerly,
Chairperson of the Audit
Committee (July 1991- September
2006); Vice Chairman of the Board
of Governors of the Federal
Reserve System and Assistant
Secretary of the U.S. Treasury.
87 Director of NVR, Inc. (home
construction).
Joseph J. Kearns
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1942
Trustee Since
August
1994
(Retired
December
31, 2023)
Senior Adviser, Kearns &
Associates LLC (investment
consulting); Chairperson of the
Audit Committee (2006-2022) and
Director or Trustee of various
Morgan Stanley Funds (since
August 1994); formerly, Deputy
Chairperson of the Audit
Committee (July 2003-September
2006); CFO of the J. Paul Getty
Trust (1982-1999).
88 Director, Rubicon Investments
(since February 2019); Prior to
August 2016, Director of
Electro Rent Corporation
(equipment leasing). Prior to
December 31, 2013, Director
of The Ford Family
Foundation.

32
Information Concerning Trustees and Officers (Unaudited) (continued)
Name, Address
and Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other Relevant
Professional Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee
Other Directorships Held
by Independent Trustee**
Michael F. Klein
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1958
Trustee Since
August
2006
Chairperson of the Risk Committee
(since January 2021); Managing
Director, Aetos Alternatives
Management, LP (since March
2000); Co-President, Aetos
Alternatives Management, LP
(since January 2004) and Co-Chief
Executive Officer of Aetos
Alternatives Management, LP
(since August 2013); Chairperson
of the Fixed Income Sub-Committee of the Investment
Committee (2006-2020) and
Director or Trustee of various
Morgan Stanley Funds (since
August 2006); formerly, Managing
Director, Morgan Stanley & Co.
Inc. and Morgan Stanley Dean
Witter Investment Management and
President, various Morgan Stanley
Funds (June 1998-March 2000);
Principal, Morgan Stanley & Co.
Inc. and Morgan Stanley Dean
Witter Investment Management
(August 1997-December 1999).
87 Director of certain
investment funds managed or
sponsored by Aetos
Alternatives Management,
LP; Director of Sanitized AG
and Sanitized Marketing AG
(specialty chemicals).
Patricia A. Maleski
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1960
Trustee Since
January
2017
Director or Trustee of various
Morgan Stanley Funds (since
January 2017); Managing Director,
JPMorgan Asset Management
(2004-2016); Oversight and Control
Head of Fiduciary and Conflicts of
Interest Program (2015-2016);
Chief Control Officer—Global
Asset Management (2013-2015);
President, JPMorgan Funds (2010-
2013); Chief Administrative Officer
(2004-2013); various other
positions including Treasurer and
Board Liaison (since 2001).
88 Formerly, Trustee (January
2022 to March 2023),
Treasurer (January 2023 to
March 2023), and Finance
Committee (January 2022 to
March 2023).
W. Allen Reed
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of
the Americas
22nd Floor
New York, NY
10036
Birth Year: 1947
Chair of the
Board and
Trustee
Chair of the
Boards
since
August
2020 and
Trustee
since
August
2006
Chair of the Boards of various
Morgan Stanley Funds (since
August 2020); Director or Trustee
of various Morgan Stanley Funds
(since August 2006); formerly,
Vice Chairperson of the Boards of
various Morgan Stanley Funds
(January 2020-August 2020);
President and Chief Executive
Officer of General Motors Asset
Management; Chairman and Chief
Executive Officer of the GM Trust
Bank and Corporate Vice President
of General Motors Corporation
(August 1994-December 2005).
87 Formerly, Director of Legg
Mason, Inc. (2006-2019);
and Director of the Auburn
University Foundation
(2010-2015).

33
Information Concerning Trustees and Officers (Unaudited) (continued)
Name, Address
and Birth Year of
Independent
Trustee
Position(s)
Held with
Registrant
Length of
Time
Served*
Principal Occupation(s) During
Past 5 Years and Other
Relevant Professional
Experience
Number of
Funds
in Fund
Complex
Overseen by
Independent
Trustee**
Other Directorships Held
by Independent
Trustee***
Frances L.
Cashman
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of
the
Americas
22nd Floor
New York, NY
10036
Birth Year: 1961
Trustee Trustee
Since
March
2022
Chief Executive Officer, Asset
Management
Portfolio, Delinian Ltd. (financial
information) (May 2021-Present);
Executive Vice President and
various other roles,
Legg Mason & Co. (asset
management)
(2010-2020); Managing Director,
Stifel Nicola (2005-2010).
88 Formerly, Trustee and
Investment Committee
Member, GeorgiaTech
Foundation
(since June 2019); Trustee,
Member of Investment
Committee and Chair
of Marketing Committee,
and Member of Investment
Committee, Loyola
Blakefield (2017-2023);
Trustee, MMI Gateway
Foundation (2017-2023);
Director and
Investment Committee
Member,
Catholic Community
Foundation
Board (2012-2018);
Director and
Investment Committee
Member,
St. Ignatius Loyola
Academy (2011-2017).
Eddie A. Grier
c/o Perkins Coie
LLP
Counsel to the
Independent
Trustees
1155 Avenue of
the
Americas
22nd Floor
New York, NY
10036Birth Year:
1955
Trustee Trustee
Since
February
2022
Dean, Santa Clara University
Leavey School of 78 Business
(since July 2021); Dean, Virginia
Commonwealth University School
of Business (2010-2021); President
and various other roles,
Walt Disney Company
(entertainment and media)
(1981-2010)..
88 Director, Witt/Keiffer, Inc.
(executive
search) (since 2016);
Director, NuStar GP, LLC
(energy) (since August
2021); Director,
Sonida Senior Living, Inc.
(residential
community operator) (2016-
2021);
Director, NVR, Inc.
(homebuilding)
(2013-2020); Director,
Middleburg
Trust Company (wealth
management)
(2014-2019); Director,
Colonial
Williamsburg Company
(2012-2021);
Regent, University of
Massachusetts
Global (since 2021);
Director and Chair
ChildFund International
(2012-2021);
Trustee, Brandman
University
(2010-2021); Director,
Richmond Forum (2013-
2019).
* This is the earliest date the Director began serving the Morgan Stanley Funds. Each Director serves an indefinite term, until his or her successor is elected.
** The Fund Complex includes (as of December 31, 2023) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley
Investment Management Inc. (the “Adviser”) and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan
Stanley AIP GP LP).
*** This includes any directorships at public companies and registered investment companies held by the Director at any time during the past five years.

34
Information Concerning Trustees and Officers (Unaudited) (continued)
Position(s) Length of
Name, Address and Birth Held with Time Principal Occupation(s)
Year of Executive Officer Registrant Served** During Past 5 Years
John H. Gernon
522 Fifth Avenue
New York, NY 10036
Birth Year: 1963
President and
Principal
Executive
Officer
Since September
2013
President and Principal Executive Officer of the Equity and Fixed Income Funds and the
Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various
money market funds (since May 2014) in the Fund Complex; Managing Director of the
Adviser.
Deidre A. Downes
1633 Broadway
New York, NY 10019
Birth Year: 1977
Chief
Compliance
Officer
Since November
2021
Executive Director of the Adviser (since January 2021) and Chief Compliance officer of
various Morgan Stanley Funds (since November 2021). Formerly, Vice President and
Corporate Counsel at PGIM and Prudential Financial (October 2016-December 2020).
Christopher Auffenberg
100 Front Street, Suite 400
West Conshohocken, PA
19428
Birth Year: 1984
Vice
President
Since May
2022
Chief Operating Officer of the Morgan Stanley Alternative Investment Partners Hedge Fund
team and Executive Director of Morgan Stanley Investment Management Inc.
Mary E. Mullin
522 Fifth Avenue
New York, NY 10036
Birth Year: 1967
Secretary Since June
1999
Managing Director of the Adviser and various entities affiliated with the Adviser; Secretary
of various Morgan Stanley Funds (since June 1999).
Michael J. Key
522 Fifth Avenue
New York, NY 10036
Birth Year: 1979
Vice President Since June 2017 Vice President of the Equity and Fixed Income Funds, Liquidity Funds, various money
market funds and the Morgan Stanley AIP Funds in the Fund Complex (since June 2017);
Managing Director of the Adviser; Head of Product Development for Equity and Fixed
Income Funds (since August 2013).
Francis J. Smith
522 Fifth Avenue
New York, NY 10036
Birth Year: 1965`
Treasurer and
Principal
Financial
Officer
Treasurer since
July 2003 and
Principal
Financial Officer
since September
2002
Managing Director of the Adviser and various entities affiliated with the Adviser; Treasurer
(since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since
September 2002).
* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.
In addition, the following individuals who are officers of the Adviser or its affiliates serve as assistant secretaries of the Trust: Princess Kludjeson, Kristina B.
Magolis, Francesca Mead and Jill R. Whitelaw.
The Fund’s statement of additional information includes further information about the Fund’s Trustees and Officers, and is available without charge by visiting
www.morganstanley.com/im/shareholderreports or upon request by calling 1 (888) 322-4675.

35
Alternative Investment Partners Absolute Return Fund
100 Front Street, Suite 400
West Conshohocken, PA 19428
Trustees
W. Allen Reed, Chair of the Board and Trustee
Frank L. Bowman
Frances L. Cashman
Kathleen A. Dennis
Nancy C. Everett
Eddie A. Grier
Jakki L. Haussler
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Patricia A. Maleski
Officers
John H. Gernon, President and Principal Executive Officer
Christopher Auffenberg, Vice President
Michael J. Key, Vice President
Deidre A. Downes, Chief Compliance Officer
Francis J.Smith, Treasurer and Principal Financial Officer
Mary E. Mullin, Secretary
Investment Adviser
Morgan Stanley AIP GP LP
100 Front Street, Suite 400
West Conshohocken, PA 19428
Administrator, Custodian, Fund Accounting Agent and Escrow Agent
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Transfer Agent
UMB Fund Services, Inc.
235 W. Galena Street
Milwaukee, WI 53212
Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
Legal Counsel
Dechert LLP
1095 Avenue of the Americas
New York, NY 10036
Counsel to the Independent
Trustees
Perkins Coie LLP
1155 Avenue of the Americas
New York, New York 10036