FrontPoint Hit With Another $500M In Redemptions

Feb 17 2011 | 5:17am 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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...