Eisman's Former FrontPoint Team To Go It Alone

Sep 14 2011 | 1:47pm ET

Former FrontPoint Partners star trader Steven Eisman's right-hand men are launching a hedge fund without their former boss.

Danny Moses, Porter Collins and Vincent Daniel have founded Seawolf Capital in New York. The new firm will open its doors next month and plans to launch its maiden hedge fund in January.

The three men have worked with Eisman since 2006 and were widely expected to join him at his own new hedge fund after Eisman left FrontPoint in June. It's unclear why the two sides decided to split, Hedge Fund Alert Reports, although there's plenty of speculation. One source suggested that Moses, Collins and Daniel were uncomfortable with Eisman's increasingly public persona, while another hedge fund manager posited that "both feel they can do well without the other, and both feel the other held them back for the last couple of years."

Seawolf will run a financials strategy. It is expected to launch with between $150 million and $200 million—$30 million to $40 million of which will be the principals' capital—and will stop fundraising once the fund has hit $500 million in assets.

In addition to Moses, Eisman's former head trader, Collins and Daniel, former analysts, Seawolf features former FrontPoint executive director for portfolio finance Ed Fasano, who will be the new firm's CFO.

All five men were left looking for work after FrontPoint, rocked by an insider-trading scandal, elected to liquidate Eisman's two funds; the firm said it would shutter all but four of its funds in June, and following a spin-off and fund sale, the once-$7 billion firm will be left with just two funds.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

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.