Sat, May 25, 2013
A A A
Welcome Guest
Free Trial RSS
New! Family Office and Investor Database with 11,750 contacts
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   |   
Banner
Today's Exclusives Today's Other Voices Banner More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Endurance Series Trust launches first mutual fund, multi-series trust[more]

    Bailey McCann, Opalesque New York: Endurance Series Trust, a multi-series trust, is launching with Gator Capital Management, LLC as the adviser for the Trust’s first mutual fund series. Endurance Fund Services, LLC, an independently owned and operated fund administration company will serve as t

  2. Morgan Creek Capital Management to acquire Signet Capital Management[more]

    Bailey McCann, Opalesque New York: Investment firm Morgan Creek Capital Management has acquired Signet Capital Management a UK-based credit fund of funds with $700M in assets under management. Under the agreement, Signet will contribute its funds and senior investment management team to Morgan Creek

  3. Moore Capital founder Louis Bacon to anchor $750m senior loan fund[more]

    From PEhub.com: Billionaire hedge fund manager Louis Bacon is placing a big bet on mid-market lending by backing a new firm that is seeking to raise a $750 million debt fund aiming at the lower end of the middle market, two sources told sister magazine Buyouts. Bacon, the founder of Moore Capi

  4. North America – Students are launching hedge funds on colleges across America[more]

    From Valuewalk.com: …From Cornell, whose student-run hedge fund beat Wall Street returns to the University of Michigan, which allows its students to manage as much as $250,000, student hedge fund are becoming a more prominent part of financial education. Their success has attracted the attention of

  5. A SQUARE Index returns: The Opalesque A SQUARE Index lost 0.34% in last month, and is now up 0.11% for the year 2012. The A SQUARE Funds of Funds Index lost 0.51%, expanding its year-to-date loss to -0.40%.