Wednesday, 24 August 2016
Last updated 5 hours ago
Mar 17 2011 | 2:01pm ET
Newly independent, FrontPoint Partners has lost a top executive.
William Jacoby, the $4.5 billion hedge fund's head of fund accounting, resigned shortly after FrontPoint's spin-off from Morgan Stanley was finalized earlier this month. According to Hedge Fund Alert, Jacoby plans to join another investment firm soon.
Jacoby had been with FrontPoint for almost exactly five years, joining the firm from Arlington Hill Investment Management in March of 2006. Before entering the hedge fund world, Jacoby worked at JPMorgan Chase and Barclays Capital.
It is unclear if Jacoby is one of the FrontPoint executives who threatened not to participate in the firm's management buyout from Morgan Stanley. Some at the hedge fund were reportedly unhappy with how CEOs Dan Waters and Michael Kelly handled insider-trading revelations about its now-shuttered healthcare hedge funds and the wave of redemptions that followed.
Neither FrontPoint itself nor any of its current or former employees have been charged with any wrongdoing in that case, in which a French doctor is accused of passing confidential information to a FrontPoint manager, believed to be former healthcare chief Joseph Skowron. But FrontPoint has acknowledged that it is the hedge fund referred to in the case against Yves Benhamou, and the firm has been hit with some $3.5 billion in redemptions, including the $1.5 billion formerly housed in the liquidated healthcare funds.