Morgan Stanley, Wall Street's top money-maker in asset management until last year, said Tuesday that it had promoted Dennis Shea to succeed Joseph McAlinden as the fund unit's chief investment officer for equities.
Mr. Shea, 52, the director of global equity research since 2001, will direct investment strategy for funds valued at $218 billion, said Hugh Fraser, a spokesman in London. Mr. McAlinden, 63, is to become chief global strategist for the fund management division. Both are based in New York.
Morgan Stanley last year ceded its top position in money-management fees to Goldman Sachs Group Inc. The business is considered one of Wall Street's most stable revenue sources. Morgan chief executive officer John Mack in September replaced Mitchell Merin, who had run asset management for seven years. He has also hired outsiders from hedge funds to join a newly created alternative investments unit.
"John Mack's been pretty open publicly about his unhappiness with some of the performance of their asset management business, and a change of management was implied,'' said Jeffery Harte, an analyst at Sandler O'Neill Partners LP in Chicago, who rates the stock "buy.''
Mr. Mack took over at Morgan Stanley in June after Philip Purcell was ousted from the top job. This year Mr. Mack pursued talks to buy New York-based BlackRock Inc., the third-biggest U.S. bond fund manager.
Mr. Shea, who joined Morgan Stanley in 1985, reports to Owen Thomas, who succeeded Mr. Merin last year. He oversees investment strategy for all of Morgan's global equity teams.
David Germany, the chief investment officer for fixed-income securities, also reports to Mr. Thomas. He oversees investment strategy for $91 billion of fixed-income funds and $79 billion of money-market funds. The company has not yet named a head for the alternative investments team, which manages $31 billion.
