Morgan Stanley Investment Management is stepping up efforts to build out its hedge fund platform. It is also taking the business in a new direction, seeking to employ its managers in-house, rather than backing spinouts and outside stars, as it did successfully in 2003 with Barton Biggs' Traxis Partners.
The first manager on the new platform will be Michael Feldschuh, a veteran of such big hedge funds as Millennium Partners and D. E. Shaw. Like Biggs, he is also a Morgan Stanley alumnus.
The initiative is aimed at positioning the firm to compete with other big