May 9 (Bloomberg) -- Zoe Cruz, the former co-president of
Morgan Stanley who was ousted in 2007, is liquidating her $200
million hedge fund after losing 8 percent last year, according
to a person with knowledge of the matter.

Voras Capital Management LP, which Cruz started in New York
about two years ago, will return money to investors in the
coming months, said the person, who asked not to be identified
because the information is private.

Cruz is considering opportunities in banking and investing,
the person said. She joins a number of hedge-fund managers who
called it quits in recent weeks. Billionaire energy trader John
Arnold told clients last week of his plan to close Centaurus
Energy Master Fund in Houston. BlueGold Capital Management LLP,
the $1 billion fund co-run by Pierre Andurand in London, said
last month that it will return client money.

Liquidations in the hedge fund industry rose to 775 last
year, the most since 2009, according to Hedge Fund Research
Inc., a Chicago-based research firm.

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Voras Capital was a macro fund, which sought to profit from
broad economic trends by trading everything from currencies to
commodities. Such funds lost an average 7.4 percent last year,
according to data compiled by Bloomberg.

Once viewed by analysts as a leading candidate to succeed
Morgan Stanley’s former Chief Executive Officer John Mack, Cruz
was ousted from the New York-based bank in November 2007 after
the firm disclosed $3.7 billion of losses on mortgage-related
securities at the unit she ran. She was also Wall Street’s
highest-paid female executive, earning about $30 million in
compensation in 2006.