|Four years after it purchased multi-strategy hedge fund manager FrontPoint Partners LLC, Morgan Stanley has announced that it will relinquish its majority stake in the firm. According to Bloomberg, FrontPoint’s co-CEOs Daniel Waters and Michael Kelly are leading the hedge fund firm’s management team as they purchase a controlling stake from the bank.|
FrontPoint Partners was founded in 2000 by Tiger Management veterans Philip Duff and Gil Caffray, and current co-CEO Mike Kelly, who is also a former Tiger manager. Morgan Stanley purchased its stake in FrontPoint for $400 million in 2006, and will retain a minority stake in the hedge fund. FrontPoint currently has $7 billion in assets under management.