The former head of Morgan Stanley’s principal investments group in Europe is preparing to launch an event-driven hedge fund to capitalise on dislocation in the region, according to sources familiar with the launch.

George Kounelakis, a former managing director at Morgan Stanley who incorporated start-up firm ENA Investment Capital last August, plans to launch a hedge fund around September and will have around 20 people on the team, according to a person familiar with the situation.