(Bloomberg) — Morgan Stanley is being targeted by activist Jeff Ubben's ValueAct Capital Management, which disclosed a new 2% stake Monday, attracted by the investment bank's post-crisis shift towards fee-based businesses.

The stake is a core, active holding, according to a ValueAct letter to its fund investors, which was seen by Bloomberg. The hedge fund's investment to-date in the New York-based bank is valued at more than $1.25 billion, according to a person familiar with the matter, who asked not to be identified as the information isn't public.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.