Sat, Oct 1, 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. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to