FrontPoint Sells Credit Hedge Fund To MatlinPatterson

Aug 22 2011 | 2:09pm ET

The slimmed-down FrontPoint Partners is getting even svelter.

FrontPoint, which earlier this year shut down all but four of its hedge funds in the wake of an insider-trading scandal, has agreed to sell one of those four to private equity firm MatlinPatterson. The Greenwich, Conn.-based firm will transfer the management of its three-year-old Strategic Credit Fund, and that fund's management team, to MatlinPatterson on Oct. 1.

Strategic Credit's managers, Noelle Savarese and Marc Rosenthal, informed clients of the plan about a month ago. The two will continue to run the fund, which is expected to bring between $150 million and $180 million to MatlinPatterson, The Wall Street Journal reports. The fund had managed about $500 million earlier this year before a wave of redemptions in the wake of the implication, arrest and guilty plea of Joseph Skowron, the firm's former healthcare hedge fund chief, on insider-trading charges.

FrontPoint will be left with only about $1 billion in assets after the credit team leaves. Almost all of that money is in its FrontPoint-SJC Direct Lending Fund, which debuted in January and has a six-year lockup.

At its peak, FrontPoint managed $10 billion. The hedge fund spun-off from Morgan Stanley in March, more than four years after the investment bank bought the firm.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of