Fomer Morgan Stanley co-President and head of trading Zoe Cruz is starting a hedge fund. Cruz was ousted early on in the crisis, in late 2007, as losses began to pile up. If she can raise money easily — and our guess is that she will — it will mean investors are forgiving traders who blew giant wads of cash during this cris. But then, in the hedge fund world, that’s usually how it works (see also: Merriwether, Neidherhoffer).
WSJ: [Cruz] begun recruiting employees to join a firm she plans to call Voras Capital Management, these people said. Voras is the Greek word for “north” and the name of a mountainous area near the small town in Greece where she was born.
The planned hedge fund is likely to invest in a variety of distressed assets and make macroeconomic bets on currencies and securities, according to people who have spoken with the former bond-trading executive. Read the whole thing >