NEW YORK, Oct 31 (Reuters) – Morgan Stanley is expected to announce plans to buy hedge fund firm FrontPoint Partners LLC for about $400 million as early as Tuesday, a person familiar with the talks said, as the investment bank makes its second hedge-fund investment in as many days.
Greenwich, Connecticut-based FrontPoint, which manages $5.7 billion in assets, is led by Chairman Philip Duff, formerly Morgan Stanley’s chief financial officer.
The move would come a day after Morgan Stanley, which declined comment, agreed to buy about an 18 percent stake in Avenue Capital Group for less than $300 million. Avenue manages $12 billion in assets, mostly in debt issued by struggling companies.
