Traxis' runaway success provides a boost to the new Morgan Stanley platform
T o many observers, Traxis did not look like the most promising hedge fund launch of this year. It is run by three partners, two of whom were perceived to have had mixed fortunes with previous hedge fund ventures. One of the founders had even openly hypothesized over whether the hedge fund industry was a 'bubble' in a research document titled "Looking into the Hedge Fund Bubble", published in June 2001.
Furthermore, Traxis is run by a team who have been reputed, rightly or wrongly, as having a quantitative valuation model that has a tendency to be early on its investment themes, which hardly seems appropriate in a business that is obsessed with monthly numbers and is notoriously intolerant of downside volatility.
Yet, within three months of the launch, Barton Biggs, Madhav Dhar and Cyril Moulle-Berteaux have gone a...