Thu, Jun 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Eisman leaving FrontPoint after his hedge fund is closed

Thursday, June 09, 2011
Opalesque Industry Update - Steve Eisman, who ran the biggest hedge fund at FrontPoint Partners, is leaving after the ailing hedge fund firm announced the closure of most of its portfolios, including a fund run by Eisman, various media reports said citing several sources.

According to the Wall Street Journal, Eisman indicated as early as January his willingness to leave FrontPoint and has even started talking with potential investors about managing their money.

FrontPoint has decided to close some of its strategies after massive redemptions rolled in during the past months as investors have expressed their reaction to one of the firm’s now-former traders being accused of insider trading. The company has not been accused of any wrongdoing and pledge cooperation with the ongoing probe.

A separate report by CNBC has identified FrontPoint's one-time health-care portfolio manager Joseph "Chip" Skowron, as the manager who is currently facing charges of insider trading. He was arrested by authorities and was charged with paying off a doctor in exchange for illegal tips on drug trials.

Since May, FrontPoint has received redemption requests from investors, forcing the company to wind down most of its funds keeping only the FrontPoint Quant Macro Fund, the FrontPoint Strategic Credit Fund, the FrontPoint Rockbay Fund and the recently launched FrontPoint Direct Lending funds open.

Known for his big bets against subprime mortgages and for-profit colleges, Eisman has managed about $1.3bn at FrontPoint since joining the firm in 2004.

The Journal said a spokeswoman for Eisman has refused to comment on the report.
Komfie Manalo

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t

  5. Hedge Fund Due Diligence Exchange offers complete due diligence reports at $1500[more]

    Matthias Knab, Opalesque: HFDDX is offering complete alternative investment due diligence reports at $1500 US. Industry professionals can simply go to www.hfddx.com and indicate their interest in sponsoring one or more DD Reports for $1500 each.