Morgan Stanley Loses Hedge-Fund Clients on Stock Drop

``Hedge funds that account for less than 10 percent of Morgan Stanley's prime-brokerage balances this week withdrew their money or told the firm they planned to, according to a person with direct knowledge of the matter. The loss of all hedge-fund accounts wouldn't materially affect the company's access to reserves, said the person, who asked not to be identified because the information is confidential.''