Morgan Stanley Shakes Up Hedge Fund Unit
Morgan Stanley
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hired a new executive to oversee its prime brokerage division, which serves hedge fund clients.
Alex Ehrlich, who ran prime brokerage for
UBS
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, took over the unit that had been run by Stuart Hendel, who is leaving Morgan Stanley, according to a
Bloomberg
report that cited an internal company memo. A Morgan Stanley spokesman did not immediately respond to an email message.
While less profitable than it was before the crisis, prime brokerage remains critical to investment banking franchises of banks like
Goldman Sachs
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JPMorgan Chase
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,
Credit Suisse
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and
Deutsche Bank
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.
Morgan Stanley and Goldman used to dominate the
prime brokerage
business, but have lost ground to rivals over the past year.
