The $17.9 Billion Loop

Prime brokerage leverage, the $55B EA merger arb, Figma's 250% IPO pop, and a closed derivatives gap — the anatomy of how Morgan Stanley's record Q4 and hedge fund returns from 10% to 45% were the sam

How Prime Brokerage Leverage, the $55B EA Merger Arb, Figma’s 250% IPO Pop, and Morgan Stanley’s Closed Derivatives Gap Co-Created Both a Record Quarter and Hedge Fund Returns Ranging from 10% to 45% in 2025

Morgan Stanley’s $17.9 billion Q4 2025 was not an outlier. It was the inevitable output of a machine that hedge funds and banks have spent years con…