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

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.