Monday, 4 May 2015
Last updated 6 min ago
Jan 24 2011 | 11:48am ET
Despite the insider-trading scandal that has cost it billions, FrontPoint Partners' spin-off from Morgan Stanley will move forward.
The split will now occur in March, co-CEO Daniel Waters told employees in a memo issued Thursday, the New York Post reports. The insider-trading scandal—which led FrontPoint to dismiss its entire healthcare team and liquidate its healthcare hedge funds—did force the hedge fund to renegotiate and revise the terms of the spin-off, Waters said.
Morgan Stanley and FrontPoint first reached a deal to split in October. The following month, a French doctor was arrested and accused of passing confidential information on to a hedge fund, later identified as FrontPoint. In the wake of the arrest, FrontPoint saw its assets under management plummet from $7 billion to $4.5 billion, although they have rebounded somewhat.
It is unclear what the new terms of the spin-off are. Under the original plan, Morgan Stanley was to retain a sizeable stake in FrontPoint and a share of its profits for up to five years at it sought to recoup the $400 million it paid for the firm five years ago. At the time, Morgan Stanley said the spin-off would cost it $70 million, but last week revealed that it was taking a $126 million charge.
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…