Friday, 26 December 2014
Last updated 2 days ago
Dec 13 2010 | 12:42pm ET
Faced with huge redemptions, FrontPoint Partners laid off 28 staff members on Friday, a spokesman said.
For a firm that employed 219 people as of the end of September, that amounts to a headcount reduction of more than 10%. The firm was recently spun off from Morgan Stanley, just as its top healthcare hedge fund manager was linked to an insider-trading case involving a French doctor arrested last month.
The firm has since put that fund manager, Joseph Skowron, on leave and has liquidated its healthcare funds. But the firm, which managed $7.5 billion before the scandal, has been hit with about $3 billion in redemption requests. FrontPoint said it expects to manage about $5 billion after filling those redemptions not rescinded.
"We have, as a result of clients seeking return of capital, made the extremely difficult decision to reduce staff by 28 positions—all among the non-investment team staff," FrontPoint spokesman Steve Bruce said. "These reductions will not impact our investment teams and overall client service."
The staff reduction was first reported by Dealbreaker.com on Friday.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
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