Friday, August 24, 2012

Facebook Inc(NASDAQ:FB) : Morgan Stanley Funds Have a Substantial Stake

Investors in the mutual fund schemes run by Morgan Stanley may be a tad bit worried to hear that the global investment manager has a large stake in Facebook Inc (NASDAQ:FB) in the form of holdings by its many schemes.

Reports this morning from Mornigstar.com and the Wall Street Journal said that there were four separate funds which had Facebook shares as part of their portfolio and the combined weightage of these holdings of up to 7.77 percent.

Those closely following the fortune of the company may know that the stock has depreciated  by nearly half since its market debut in May earlier this year.

Interestingly Morgan Stanley was the lead underwriter to the company's IPO and has been the butt of snide remarks that it has been responsible for creating the hype around the issue, in which millions of investors have burnt their fingers.

Can FB Rebound After The Recent Turmoil? Find Out Here

There is no doubt that the stock's shaky foundations is a drag on the funds' performance. The large exposure to the stock might mean that the brokerage itself bought the Facebook story and it genuinely believed that Facebook was a company for the long term.

On a separate note, there are developments afoot at Facebook headquarters which suggest that the company is serious about the mobile space, where about roughly half of its subscriber base has moved.
Probably stung by incessant criticism that the company is unable to monetise its mobile user base, the company has now come out with a Facebook application meant for Apple's iOS.

According to reports, Facebook has said that the new app will be faster and more responsive than the existing one. Available for download from iTunes, it is supposed to give a superior performance.

The new version has been re-built from the ground-up and is faster in almost every way. It now starts up twice as fast as it did previously.

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