GLOBAL – Morgan Stanley’s prime broker heavyweight and hedge fund specialist, Stu Bohart, has been appointed chief of alternative investments at Morgan Stanley Investment Management.

Bohart, 40, will head up the alternatives division comprising $18bn (€14bn) of MSIM’s roughly $442bn of assets under management.

This was the last of three positions to be filled, following the creation of a new structure at the end of last year. This saw the chief investment officer role divided into equity, fixed income and alternatives. Dennis Shea heads up equities and David Germany is in charge of fixed income.

“Given his extensive experience working with hedge funds and alternative investments, Stu Bohart is the ideal candidate to help us realise the significant growth opportunities we see in the alternative investment business,” said Morgan Stanley co-president Bob Scully.

Bohart was formerly global head of Morgan Stanley’s prime brokerage business. He joined the firm in 1997 as a portfolio manager in the investment management business.

Before this, he occupied trading and portfolio management positions at Bankers Trust, FrontPoint Partners and Harvard University’s endowment fund.

Bohart will report to MSIM president and chief operating officer Owen Thomas.

“There is a great deal of work to be done in our alternative investment business,” said Thomas in a statement.

“But we are confident that Stu will provide the leadership and perspective we need to continue building this important part of our asset management franchise.”

According to one report, the establishment of a specific alternatives arm follows criticism from Morgan Stanley chairman and chief executive John Mack about the firm’s past failure to develop various alternative investment products, which were in high demand by pension funds, mutual funds and rich individuals.

As of the end of February, MSIM has $247bn in institutional assets under management and $195bn in retail assets.

Topics