Monday, 1 September 2014
Last updated 2 days 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...