Morgan Stanley Investment Management plans to split its U.S. equities practice into separate groups focusing on value and growth. At the same time, several senior portfolio managers have said they plan to leave the company.
Philip Friedman, a senior large-cap growth portfolio manager and head of Morgan Stanley’s active domestic equity product area, will leave at the end of this month, said Bret Gallaway, Morgan Stanley spokesman. Mr. Friedman will join John Levin & Co., an investment firm. Bill Auslander, who co-managed the Van Kampen Focus Equity B fund with Mr. Friedman, will take over sole management of the fund and Mr. Friedman’s other duties, Mr. Gallaway said.
Richard Behler was chosen to lead the value arm of Morgan Stanley’s U.S. equity group. He will report to Joseph J. McAlinden, who will be acting head of the growth group, Mr. Gallaway said. Mr. Behler will replace Gary Schlarbaum, who plans to leave later this year to start a hedge fund with his son, Mark, formerly a trader at T. Rowe Price Group Inc. Mr. Behler is a Miller, Anderson and Sherrerd veteran and has managed Morgan Stanley’s institutional value funds since Morgan bought Miller Anderson in 1996, Mr. Gallaway said.
Dennis Lynch was chosen to lead Morgan Stanley’s new small-cap and midcap growth team. He will replace managing director Arden Armstrong, who plans to leave at the end of this month to start her own firm. Steven Chulik, who worked on Ms. Armstrong’s midcap portfolio management team, also plans to join Ms. Armstrong, Mr. Gallaway said.
