Morgan Stanley, (NYSE:MS) runs U.S. mutual funds that guide underwriter in Facebook Inc.’s (NASDAQ:FB) $16 billion IPO, have excessively high investments in the social-media firm, departure fund shareholders uncovered to the stock’s big decrease since its May 18 IPO.
According to fund tracker Morningstar Inc, new data demonstrate that eight of the peak nine U.S. mutual funds with Facebook shares as a percentage of total assets are derived by Morgan Stanley’s asset-management arm,.
Morgan Stanley had a vital role in assembling orders for Facebook as the social-media firm prepared to go public. It assisted advise Facebook executives to rise the size and price of the IPO, despite warnings the firm was making regarding its profit guidance . The New York securities company, which refused to comment, took in $200 million in underwriting fees and trading profits, according to regulatory filings and people involved in the contract.
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