Wednesday, 22 October 2014
Last updated 35 min ago
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.
Sep 22 2014 | 4:15pm ET
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