How the power players do it - by Fortune senior editor at large Patricia Sellers

Morgan Stanley's ex-president starts a hedge fund

October 9, 2009: 12:21 PM ET

by Patricia Sellers

Maybe it's a sign of recovery in the financial services industry: Wall Street's two most renowned women dropouts have settled on what to do next. Yesterday on Postcards, you read Sallie Krawcheck's bizarre tale of her bumpy road on the way to Bank of America (BAC). Today, news broke that former Morgan Stanley (MS) co-president Zoe Cruz is starting a hedge fund.

Cruz, who spent her entire career at Morgan Stanley (starting as a summer associate in 1981), got fired by CEO John Mack almost two years ago, taking the hit for the firm's huge trading losses. This morning, the Wall Street Journal reported that she has begun recruiting employees for her new firm, to be called Voras Capital Management. The name refers to a mountainous region near where Cruz grew up in Greece.

Famouly press-shy, Cruz declined to talk about her plans. In fact, she has not spoken publicly for many years--except for one interview that she did with me in September 2007, shortly before her ouster at Morgan Stanley. Cruz told me then that she never planned her career. "When you don't plan, things are easier," she said. She was interested in one thing, she explained: "Leading an organization to be No. 1."

Now hoping to launch her hedge fund with at least $200 million, Cruz is starting from scratch for the first time in her life. That name, Voras, suggests where she hopes her business will go: "Voras" is Greek for "north."

Fortune's Most Powerful Women
Fortune's Most Powerful Women For the latest on the most influential women in business, philanthropy, government, and the arts, like us on Facebook.
Guest Posts
Fortune Most Powerful Women Fortune Most Powerful Women The rolodex that redefined power
Profile in The Washington Post
Sheryl Sandberg: Sheryl Sandberg: Don't leave before you leave
COO of Facebook
Wendy Clark Wendy Clark Exec learns firsthand how the homeless live
SVP of the Global Sparkling Brand Center at Coca-Cola
Marissa Mayer's 3 biggest decisions as Yahoo CEO With company stock up over 100% since she began running the company 16 months ago, Mayer reflects on her choices to date. Watch
Chelsea Clinton on running for office: 'I don't know' The vice chairman of the Clinton Foundation talks about her diverse career path and growing up in the spotlight. Watch
MPWomen go Global

The Fortune/U.S. State Department Global Women Leaders Mentoring Partnership brings rising-star women from countries around the world to the U.S. for three-week mentorships with participants of the annual Fortune Most Powerful Women Summit - among them Ursula Burns of Xerox, Laura Lang of Time Inc., Marissa Mayer of Yahoo, and Tory Burch.

Read more

Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by VIP.