Tuesday, 21 October 2014
Last updated 49 min ago
Sep 29 2008 | 9:06am ET
Morgan Stanley’s prime brokerage lost almost one-third of its assets last week amid fears that the Wall Street giant would face a Lehman Brothers-style collapse.
Several clients have indicated they are likely to return to the fold now that the firm has become a bank holding company regulated by the Federal Reserve, and with a U.S. government bailout of Wall Street imminent. But the loss of hundreds of billions in prime brokerage assets—including about half of its assets in London—may cripple one of Morgan Stanley’s most profitable divisions. Just 10 days ago, only 10% of the firm’s hedge fund clients had pulled their money or announced plans to do so.
Hedge funds are no longer fleeing Morgan Stanley in such great numbers, with the cash outflow slowing to a trickle, the Financial Times reports.
Among the beneficiaries of Morgan Stanley’s woes are Barclays Capital, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan Chase and UBS. Morgan Stanley had pushed executives at other banks not to make a play for its clients as it struggled to survive this month, though competitors said marketing their services did not prove necessary.
“We didn’t have to call them,” one told the FT. “They called us.”
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 ...