Activist fund ValueAct takes about 2 percent stake in Morgan Stanley

(Reuters) - Jeff Ubben-run activist hedge fund ValueAct Capital Management LP took a 1.98 percent stake in Morgan Stanley MS.N, regulatory filings showed on Monday.

ValueAct Holdings LP, a fund of ValueAct Capital Management, said it took a stake of 38 million shares in Morgan Stanley.

ValueAct Capital Management played a key role in shaking up Microsoft Corp's MSFT.O management in 2013.

Morgan Stanley, which has struggled to improve its bond trading business for years, showed signs of executing a turnaround when it delivered better-than-expected second-quarter bond trading revenue.

Shares of Morgan Stanley have fallen about 8.3 percent this year.

Reporting By Sudarshan Varadhan in Bengaluru; Editing by Maju Samuel