December 19, 2012 / 9:31 PM / 5 years ago

Morgan Stanley urges redemptions from Paulson Advantage funds

BOSTON, Dec 19 (Reuters) - Morgan Stanley Smith Barney is recommending to its financial advisers that they pull client money out of John Paulson’s Advantage and Advantage Plus funds, a person familiar with the matter said on Wednesday.

The move is another blow to the billionaire hedge fund manager as his $5.7 billion Advantage funds are facing double-digit losses for the second year in a row.

The move is expected to shrink the two portfolios by roughly $100 million over the next year but the person familiar with the matter said that the New York-based firm is also expecting to see inflows that will offset these numbers.

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