Spin-Off City: Morgan Stanley May Make Prop. Desk A Hedge Fund

Aug 6 2010 | 11:20am ET

Morgan Stanley, which is currently working to spin-off its FrontPoint Partners hedge fund, could be mulling a second hedge fund spin-off.

The firm is pondering its options for a proprietary trading desk called Process Driven Trading, The Wall Street Journal reports. The newly-enacted Dodd-Frank financial regulation reform law bars banks from prop. trading.

Among the possibilities are a spin-off of PDT, which is headed by Peter Muller. Morgan Stanley may also move the desk to its investment management business, where it would also begin accepting outside investment.

A decision on PDT is expected within the next few months, the Journal reports. The desk has earned Morgan Stanley billions of dollars since its creation in 1993.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...