Morgan Stanley Takes $126M Charge On FrontPoint Spinoff

Jan 20 2011 | 1:06pm ET

Buying FrontPoint Partners cost Morgan Stanley $400 million. Selling the hedge fund hasn't come much cheaper.

Morgan Stanley said is took a $126 million charge from the October spin-off. In November, the firm said it expected to take a $70 million pre-tax loss on the sale of the $7 billion hedge fund.

Terms of the spin-off were not disclosed. But Morgan Stanley did retain a sizeable minority stake in FrontPoint and hopes its share of the fund's profits will help it offset the amount it paid for the firm.

The FrontPoint charge was revealed as Morgan Stanley said it posted a 35% jump in fourth-quarter profit.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    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…