FrontPoint Hit With Another $500M In Redemptions

Feb 17 2011 | 6:17am ET

Investors continued to flee scandal-tarred FrontPoint Partners in the first quarter. Clients have filed redemption notices totaling $500 million this year.

The new redemptions, reported by Pensions & Investments, follow $3 billion of client withdrawals in the fourth quarter. FrontPoint, which is spinning off from Morgan Stanley, was hit hard following reports that its healthcare hedge funds were the recipients of insider information from a French doctor charged with passing confidential secrets to hedge funds last year.

Neither FrontPoint nor any of its former employees have been accused of any wrongdoing. But FrontPoint did fire its entire healthcare team and liquidated their funds, totaling some $1.5 billion.

The newest redemptions will cut FrontPoint’s assets to about half the $7.5 billion it managed before the Nov. 2 arrest of Yves Benhamou, the French doctor.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

AIMA: How The U.K.'s SMCR Will Affect U.S. Firms

Jun 20 2017 | 6:29pm ET

U.S. investment managers need to think seriously about how tough new U.K. conduct...

 

From the current issue of