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

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.