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

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.