Sunday, 26 April 2015
Last updated 2 days ago
Jun 10 2011 | 2:09am ET
Steven Eisman, the soon-to-be-former star manager at FrontPoint Partners, will launch his own hedge fund.
The hardly-surprising revelation—Eisman has been talking about striking out on his own for months—comes after news that he would leave FrontPoint, which is liquidating his two hedge funds.
Eisman's half-dozen strong team at FrontPoint will join him at the new venture, which still lacks a name. It also lacks non-investment staff that will have to be hired before the new firm can launch its maiden fund, Bloomberg News reports.
Investors in Eisman's two funds at FrontPoint, Financial Services and Financial Horizons, will get to bring their high-water marks with them to the new firm, and will be spared paying performance fees until Eisman recoups their losses of the last year-and-a-half. Services is down about 14% over that period, losing 8.5% last year and 5.3% in the first quarter of this year.
FrontPoint is shutting down most of its hedge funds, including its flagship multi-strategy fund; only four funds will continue beyond the end of the month. The firm, which managed $7 billion as recently as six months ago, has been buffeted with redemptions since its top healthcare manager became ensnared in an insider-trading scandal.
Those redemptions are behind Eisman's decision to leave the firm. Even though his own funds were not implicated in the scandal, withdrawals cost them hundreds of millions of dollars.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…