AI market round up: Morgan Stanley takes hedge fund hit

Buried deep in the announcement of Morgan Stanley’s third-quarter earnings results was a substantial hit from the bank’s newly built hedge funds business.

Morgan Stanley took a $480 million loss mainly related to market-neutral, quantitative hedge fund strategies. The firm says that the hit was spread across several groups and looked even worse at one point earlier in the third quarter.

By the time the relevant investment strategies began to recover ground towards the end of August, managers had delevered and reduced their positions, so capturing less of the upturn.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access