Wednesday, 22 October 2014
Last updated 13 hours ago
Nov 17 2010 | 1:00pm ET
The head of Morgan Stanley's asset management business reiterated that the bank may sell off its minority stakes in several hedge funds.
Gregory Fleming, who has been evaluating Morgan Stanley Investment Management's businesses since he was named president in February, said it was mulling its investments "with a goal to thoughtfully free up capital, balancing for commitments, timing and returns." He told the Bank of America Merrill Lynch Banking and Financial Services Conference that its stakes in hedge funds Avenue Capital Group, Lansdowne Partners and Traxis Partners "attract significant capital charges" under the newly-enacted Dodd-Frank financial reform law.
That law's version of the Volcker rule restricts banks' hedge fund and private equity investments to 3% of their Tier One capital.
Fleming said the performance, scalability and return on capital of the hedge fund stakes and other principal investments would help determine the direction Morgan Stanley takes.
The firm is set to add another minority hedge fund stake in the coming weeks when it spins off FrontPoint Partners, the hedge fund it acquired four years ago. Morgan Stanley plans to retain a stake in the newly-independent hedge fund for at least five years as it seeks to recoup the $400 million it paid for FrontPoint.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...