While Morgan Stanley and FrontPoint Partners continue to hash out a possible merger deal, Merrill Lynch continues to add to its stable of alternatives partners. Just a week after closing its merger with fund manager BlackRock which plans a major expansion of its alternative investments offerings Merrill has agreed to take a minority stake in New York-based DiMaio Ahmed Capital, a credit hedge fund. The firm, while spun-off from Credit Suisse Alternative Capital last year, manages $2 billion in hedge funds and another $1 billion in structured vehicles. According to Financial News, terms of the deal were not disclosed. In the BlackRock deal, Merrill swapped its Merrill Lynch Investment Managers division for a nearly 50% stake in the combined BlackRock-MLIM entity.