Thursday, 26 November 2015
Last updated 8 hours 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 FrontPoint said it expects to manage about $5 billion after filling those redemptions not rescinded.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.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…