Morgan Stanley Rethinks Hedge Fund Stakes

Feb 3 2010 | 7:45pm ET

Morgan Stanley is considering its options regarding its stake in several hedge fund firms, its CEO said.

James Gorman told investors at a conference in New York that the Wall Street giant was “evaluating” its stakes in Avenue Capital Group, Lansdowne Partners and Traxis Partners, as well as its ownership of FrontPoint Partners. Gorman, who succeeded John Mack as CEO last month, did not specify what options the firm was evaluating.

Gorman’s comments follow his announcement last month that incoming Morgan Stanley Investment Management chief Greg Fleming would examine the firm’s ownership of the hedge fund managers.

Last month, President Barack Obama unveiled a plan to bar bank holding companies from owning, investing in or sponsoring hedge funds and private equity funds. Morgan Stanley, which became a bank holding company in 2008 to become eligible for federal bailout funding, is the sixth-largest bank in the U.S. by assets, and owns minority stakes in six hedge fund managers, in addition to FrontPoint, which it bought in 2006.

Last month, The Wall Street Journal reported that FrontPoint’s leaders were mulling a management buyout of the Connecticut firm.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.