Zoe Cruz, the former co-president of Morgan Stanley who was ousted in 2007, is liquidating her $200 million hedge fund after losing 8% last year, according to a person with knowledge of the matter.
Voras Capital Management, which Ms. Cruz started in New York about two years ago, will return money to investors in the coming months, said the person, who asked not to be identified because the information is private.
Ms. Cruz is considering opportunities in banking and investing, the person said. Ms. Cruz didn't return telephone calls seeking comment.
Liquidations in the hedge fund industry rose to 775 last year, the most since 2009, according to Hedge Fund Research.
Voras Capital was a macro fund, which sought to profit from broad economic trends by trading everything from currencies to commodities. Such funds lost an average 7.4% last year, according to data compiled by Bloomberg.
Once viewed by analysts as a leading candidate to succeed Morgan Stanley's former CEO John Mack, Ms. Cruz was ousted from the bank in November 2007 after the firm disclosed $3.7 billion of losses on mortgage-related securities at the unit she ran. She was also Wall Street's highest-paid female executive, earning about $30 million in compensation in 2006.