ValueAct's recently disclosed stake in Morgan Stanley isn't a cause for concern — if anything, it's "great news" for Morgan Stanley, according to one bank analyst.
On Monday, regulatory filings revealed that the hedge fund had acquired 38 million shares of the investment bank, or a roughly 2 percent stake.
The stock was up about 2 percent in intraday trade Tuesday.
This kind of investment is "what the banking sector needs," said CLSA's Mike Mayo during an interview on CNBC's "Halftime Report." He explained that while Morgan Stanley has "an excellent franchise," its "execution has fallen short."