Reuters Singapore – U.S. investment bank Morgan Stanley is weighing whether it should remain independent or merge with a bank, given the recent turbulence in the company’s share price, broadcaster CNBC reported on Wednesday.

Morgan Stanley officials were not in merger talks as of late Tuesday, CNBC said, citing unnamed people close to the matter.

"But senior people at Morgan concede that further zig-zags in the company’s stock price could and possibly will force the company to change course and seek a merger partner, probably a well capitalized bank," CNBC reported on its Website.

Morgan Stanley shares closed down 10.8 percent at $28.70 on Tuesday, having fallen 46 percent so far this year.

Morgan Stanley officials in Hong Kong declined to comment on the report.

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New York (HedgeCo.Net) – Greenwich-based Andor Capital Management will liquidate its $2 billion hedge fund after posting losses due to unfavorable market conditions, following in the footsteps of many failed hedge funds this year.   

Co-founder Daniel Benton announced the decision in a letter to investors this week while outlining a liquidation to start in October.

"My desire to devote more time to my family and other interests runs counter to the obligations of a hedge-fund manager who must be immersed in the markets in order to meet client expectations," Benton said in the letter.  He also stated that he will be retiring from managing outside capital after 24 years in the business.

In 2004, Andor made headlines when Benton split from Co-Founder Christopher James.  At that time, Andor held over $6 billion in assets and was just starting to experience turbulence after a period of enviable returns.

Benton, having been a technology investor at Pequot, built up high stakes in energy and commodities companies.  However, the volatility associated with these companies has not translated well for many hedge funds invested in those sectors.   

The hedge fund will continue to invest throughout August and September.   

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Tags: april-29, brokerages, clientele, downside, due-diligence-service, levin, london-offices, objections, risky-investment, sentiment-indicators, staffers

Boston Globe- The Securities and Exchange Commission yesterday said that it and other regulators would begin examining rumor-spreading intended to manipulate securities prices.

The timing of the announcement, made before the markets opened in Asia, was meant to warn broker-dealers, hedge funds, and investment advisers to quell any spreading of rumors before trading started today.

The SEC has been engaged in an internal debate over what kind of investigation to mount with respect to rumors. The turbulence in the markets last week, with rumors adding to concerns about fundamentals affecting commercial banks, investment banks, and the government-chartered enterprises Fannie Mae and Freddie Mac, sped the decision to begin the examination and make it public.

"Traders know there is false information in the market. They need to think twice if they are going to pass it on," said Lori Richards, an SEC official.

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