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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note