Sunday, 28 August 2016
Last updated 1 day ago
Jan 20 2011 | 2:27pm ET
Steven Eisman moved today to tamp down on speculation that he was planning to leave FrontPoint Partners.
The star fund manager, who runs $1.3 billion in financial services investments at the New York-based firm, said in a statement, "I am not leaving FrontPoint now."
"I am in discussions on a structure which will provide me with greater operational flexibility and control over my own business," Eisman said. "I will be managing money for FrontPoint and its clients for years to come."
Eisman's statement comes amidst media reports that he was planning to leave FrontPoint and launch his own firm. Yesterday, Eisman said he wanted "to have more control over my destiny" and The Wall Street Journal reported that he had held discussions with potential clients about investing with his new firm.
Eisman did not rule out starting such a firm, specifically saying he would continue to manage money for FrontPoint and that the structure of the possible new firm hadn't been decided.
Losing a star manager like Eisman would be a further blow to FrontPoint, which is being spun-off from Morgan Stanley. The hedge fund has seen its assets under management plummet from $7 billion to $4.5 billion in the wake of an insider-trading scandal involving its healthcare hedge funds. FrontPoint has since shuttered those funds and fired its managers.
Eisman had no role with the healthcare funds.