Morgan Stanley to expand its hedge fund program

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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.

 Michael Feldschuh

The initiative is aimed at positioning the firm to compete with other big