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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Comments (9)

  1. Posted by MS Barn Door Quant | December 19, 2012 at 5:18 PM

    Good job on the closing, team!

  2. Posted by Guest | December 19, 2012 at 5:37 PM

    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.


  3. Posted by Guest | December 19, 2012 at 5:41 PM

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

    -WB Jennings

  4. Posted by Ron Mexico | December 19, 2012 at 5:44 PM

    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. Posted by jim cramer | December 19, 2012 at 7:03 PM

    Your money is safe in aadvantage plus

  6. Posted by Interested Observer | December 19, 2012 at 11:44 PM

    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.

  7. Posted by Guest | December 20, 2012 at 8:39 AM

    my life is bro

    -Johnny Paulson

  8. Posted by Mint Berry Crunch | December 20, 2012 at 4:13 PM

    Is that you captain hindsight?

  9. Posted by Interested Observer | December 20, 2012 at 11:07 PM

    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!

  10. Posted by TheodoreBallgamePhd | December 21, 2012 at 10:17 AM

    Wow, you make Matt's charts seem riveting.