Local Morgan Stanley executive Gwen Pacarro yesterday took over the top job at the investment firm's Hawai'i operations, replacing Paul C.T. Loo, who retired after running the office for more than four decades.

With the promotion, Pacarro becomes the first woman to head the state's largest investment firm.

"Selecting Gwen Pacarro continues a dual tradition of sound investing and community building at Morgan Stanley," said Loo.

Loo, 75, has been an influential member of the local and national investment communities. He is often quoted in the local daily newspapers as well as in the Wall Street Journal, The New York Times and Forbes magazine for his investment advice.

He currently serves as a trustee of Hawai'i Pacific University and is a member of Chaminade University's board of regents.

Pacarro, 52, joined Morgan Stanley in 1983 and most recently was a senior consultant and senior vice president.

In 1998, she pioneered The Pacarro Group within Morgan Stanley, which provides a team approach to comprehensive wealth management. The group works extensively with individuals, foundations and endowments on growth, preservation and distribution of wealth.

Pacarro served on the Hawai'i Community Foundation's board of governors from 1995 to 2000 and is chair of the Women's Fund of Hawai'i, a group of women committed to raising funds for organizations that empower women and girls. She is a graduate of Punahou School and Lewis and Clark College in Oregon.

Morgan Stanley is Hawai'i's largest investment brokerage firm with five offices on four islands. The firm began in Hawai'i in 1921 as Duisenberg and Wichman, and in 1924 it merged with Dean Witter, which later merged with Morgan Stanley in 1997.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.