Ex-Morgan Stanley President Cruz's Hedge Fund Struggles

Mar 17 2011 | 2:02pm ET

Former top Morgan Stanley executive Zoe Cruz is finding the hedge fund business an unforgiving one.

Less than a year after launching its first two hedge funds, Cruz's Voras Capital Management has already closed one amidst fundraising difficulties, the New York Post reports. The New York-based firm is also having trouble holding on to staff, according to the tabloid.

Richard Bani, the firm's CFO, is planning to leave Voras, and the hedge fund has lost its head of marketing and investor relations. And, after pulling the plug on its credit fund, both that fund's manager, Ellen Brunsberg, and corporate bond specialist David Markus chose to leave the firm.

Voras has raised about $200 million, but has struggled to raise money since the funds debuted in August. And with the credit fund getting just one-third of that money, it didn't have the "critical mass" it needed, a source told the Post.

"As credit has rallied over the last several years there was little appetite for long-term lockups in a credit fund, so Voras is closing its credit fund with a  vast majority of credit investors moving to the Voras Macro fund, which continues to grow and is performing with its peers," a spokesman told the newspaper. Cruz herself manages the macro fund.

The spokesman also said that the departures from the firm "are associated with the closing of the credit fund."

Cruz had been co-president at Morgan Stanley and was widely seen as a possible CEO candidate. But she left the firm four years ago after a trading desk she oversaw lost $4 billion in the subprime mortgage crisis.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

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

October 2014 Cover

Deeply flawed risk benchmark

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 ...

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.