Here’s The rumour About Why Jack DiMaio Got Fired From Morgan Stanley

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[credit provider=”AP”]

Ever since his abrupt departure from Morgan Stanley this winter, people have been wondering what became of the former head of Fixed Income and Interest Rates Jack DiMaio.Now we have a hint. Word is that the hedge fund DiMaio (formerly known as the $15 million man at Credit Suisse) co-founded in 2005, DiMaio Ahmad Capital, is expanding to Singapore, where the firm plans to open an office, according to a report in Bloomberg

The fund also recently began running a managed account for an institutional investor focused in Asia, and now the firm has about $3 billion under management, according to Bloomberg. (DiMaio Ahmad Capital had about $4.3 billion under management in 2009.)

Not much has been said about the credit hedge fund since DiMaio left the fund to join Morgan Stanley in 2009. Then in January this year, DiMaio reportedly left Morgan Stanley after a disastrous bet on the direction of Treasuries lost the company tons of money. 

(A source familiar with DiMaio tells us that he predicted that the interest rates on Treasuries would trend up, towards 5%. Of course they trended down, towards more like 2.5%. The chart below shows why DiMaio’s bet might have hurt the firm.)

DiMaio said that he planned to return to the buy-side, so perhaps he is back to working with DiMaio Ahmad. So perhaps he is back with DiMaio Ahmad.