Morgan Stanley bailed on hedge-fund firm: WSJ

Last month, though, Morgan Stanley asked for its money back, disappointed by the hedge fund's performance and worried about the shrinking size of Cruz's firm, according to people familiar with the matter.

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In 2007, she was pushed out of Morgan Stanley after 25 years, including overseeing some of the firm's most profitable trading desks and steadily climbing the ladder.

Cruz, whose profit-making status and management style resulted in the nickname "Cruz missile," lost her job after a unit she supervised suffered a $4 billion loss from mortgage-market bets.

Morgan Stanley shared other investors' impatience with Cruz's fund after it lost 8% in 2011 and failed to attract investors as she hoped, said people familiar with the matter.