Wed, Aug 23, 2017
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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq

  3. David Tepper says we're 'nowhere near an overheated' stock market[more]

    From Marketwatch.com: Billionaire David Tepper thinks comparing this current stock-market environment with the overheated markets of 1999 is "ridiculous." The hedge-fund manager, who runs Appaloosa Management, told CNBC in a phone interview on Tuesday that the market's record run, notwithstanding la

  4. Opalesque Exclusive: Altegris and Artivest partner on distribution for alternative funds suite[more]

    Bailey McCann, Opalesque New York: California-based investment firm Altegris has partnered with New York-based alternative investments platform Artivest on distribution for $1 billion in alternative funds. The partnership also launches Artivest's capabilities to offer alternative solutions to acc

  5. Investing - Buffett's Berkshire Hathaway will not increase its Oncor offer, Travel-tilting hedge funds are investing in airlines and online travel agencies[more]

    Buffett's Berkshire Hathaway will not increase its Oncor offer From Reuters.com: The energy unit of Warren Buffett's Berkshire Hathaway Inc said on Wednesday it will "stand firm" on its $9 billion offer to acquire 80 percent of Oncor Electric Delivery Company LLC and will not increase it