Two of Morgan Stanley’s big name money managers, Arden Armstrong and Gary Schlarbaum, are leaving the firm, according to a Morgan Stanley spokesman. Both managers served with Miller, Anderson & Sherrard, which was acquired by Morgan Stanley in 1996.

Armstrong is leaving to create her own investment firm and Schlarbaum is planning to start a hedge fund with his son, according to published reports. While Armstrong will depart soon, Schlarbaum has not yet indicated when he will leave, the Morgan Stanley spokesman said. Neither of the managers were available for comment before press time.

Armstrong is a managing director at Morgan Stanley and is portfolio manager of its $1.9 billion Institutional Mid Cap Growth Fund and $213 million Institutional Small Cap Growth Fund. The mid-cap fund, which Armstrong has managed since 1990, has a 10-year annualized return of 14.09%, according to Morningstar. The small-cap fund, which was created in 1998, has a three-year annualized return of 35.52%.

Schlarbaum has been manager of the Morgan Stanley Institutional Small Cap Value Fund since 1987. The $1.1 billion portfolio has a 10-year annualized return of 14.55 %, according to Morningstar.

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