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Morgan Stanley Suggests Paulson And Co ‘Advantage’ Investors Pull Their Money And Run

They were willing to ’em a chance, but no more.

Morgan Stanley Wealth Management has become the second major brokerage to drop hedge fund manager John Paulson’s Advantage and Advantage Plus Funds from their retail offerings, CNBC has learned. The move was not expected. Back in May, put the funds on “watch” because of their poor performance. In an email sent to the unit’s financial advisers on Tuesday, it changed the status of the funds to “redeem” from “watch,” telling clients they should redeem their holdings in the funds. Morgan Stanley cited the poor performance of the funds as the reason behind its decision… The source said other Paulson funds continue to be offered by Morgan Stanley Wealth Management.

Morgan Stanley Wealth Management Dumps Two Paulson Funds [CNBC]

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9 Responses to “Morgan Stanley Suggests Paulson And Co ‘Advantage’ Investors Pull Their Money And Run”

  1. MS Barn Door Quant says:

    Good job on the closing, team!

  2. Guest says:

    We on the other hand recommend going all-in the equity tranche of the synthetic CDS CDO we just created off the Advantage Plus Fund first-loss class. Call fabulous Fab for term sheet and pricing levels.

    -GS

  3. Guest says:

    Basically we’re recommending you take a stab at cutting exposure.

    -WB Jennings

  4. Ron Mexico says:

    Perhaps, the 'move was not unexpected' instead?

    Even CNBC can't be surprised that another bank would recommend to redeem after investors got assraped by Santa's team of reindeer this year.

  5. Interested Observer says:

    Ok. This is action was done at least three years after it should have been. If this is representative of how private banks move then keep your money under the mattress. HF allocators/consultants in the know recommended this action years ago. Why? Simple…if through skill or luck you got subprime right then second trade long equity when big names in single digit prices was obvious trade (unlikely government would have let largest banks go bankrupt). You've made two great macro trades (down then up) now what? Assets have grown by billions. Markets rangebound. Smart allocators took money off the table said thank you Mr Paulson and good luck.

  6. Interested Observer says:

    Captain Hindsight? No! A good investor that personally said thank you to Mr Paulson for making me alot of money and pulled years ago. Yes!