Wednesday, 1 April 2015
Last updated 53 min ago
Dec 15 2010 | 10:13am ET
Last month, FrontPoint Partners shuttered its healthcare hedge funds in the wake of an insider-trading investigation. And with no more healthcare funds, the embattled firm saw no reason to continue paying its healthcare team.
Greenwich, Conn.-based FrontPoint cut the entire 12-person team working on the funds at the beginning of November, according to published reports. The move came shortly after FrontPoint, which recently spun off from Morgan Stanley, acknowledged that Joseph Skowron, its lead healthcare manager, was the unidentified hedge fund manager named in the criminal complaint against a French doctor.
That doctor, Yves Benhamou, was accused of passing confidential information on the results of a drug trial to at least six hedge funds, among them FrontPoint. While neither the firm nor Skowron have been charged with any wrongdoing, FrontPoint suspended him pending an investigation.
Despite the lack of charges, investors began fleeing the $1.5 billion funds—as well as other FrontPoint funds. The firm has been hit with some $3 billion in redemption requests.
Last week, FrontPoint laid off more than two dozen non-investment staffers as it moves to cut costs in the face of the redemptions. The firm employed 219 people as of the end of September.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…