Michael Novogratz’s Fortress Investment Group boosted its passive stake to 5% in Morgan Stanley (MS). According to the 13G filing on October 27th, Fortress Investment Group now takes approximately 9.27 million shares in MS, up from its previous quarter’s 200 thousand shares position. MS was hammered by the Greek debt crisis in the third quarter. The stock has lost 28% in 2011. Fortress Investment Group was able to make its purchase in a short time since MS’s daily volume is very large. It’s possible that the firm bought the shares at $17. Following the bull news in Europe, MS rallied on October 27th and is now trading at $19.31.
Thirty five hedge funds had MS in their portfolios in the second quarter. Eric Mindich’s Eton Park Capital reported 15 million shares or 8.09% stake and ranked as MS’s largest hedge fund stakeholder. Jonathon Jacobson’s Highfields Capital Management took 13 million shares, corresponding to a 7% stake.
From the firm’s website, Fortress Investment Group is “a leading, highly diversified global investment management firm. Fortress applies its deep experience and specialized expertise across a range of investment strategies - private equity, credit, liquid markets and traditional fixed income - on behalf of over 1,000 institutional clients and private investors worldwide”. In the second quarter, Fortress Investment Group reported a 13F portfolio of nearly $2 billion. The firm mainly invests in Services, Healthcare, and Financial sector.
Morgan Stanley is a famous financial holding company. The company operates in three segments: Institutional Securities, Global Wealth Management Group, and Asset Management, through which it offers various financial products and services to corporations, governments, financial institutions, and individuals worldwide. The company was founded in 1935 and is headquartered in New York City, NY.