Steve Eisman To Launch New Fund In January

Oct 18 2011 | 1:59pm ET

Steve Eisman, the hedge-fund manager who made his name betting against subprime mortgages, will launch a new fund—Emrys Partners—in January.

Four people “briefed on the matter” told Bloomberg Eisman will partner with Rocwood Capital Managment’s Jon Kalikow, Goldman Sachs Group’s Ed Cabral and JAT Capital Management’s Mark Weiner on the long-short fund which will invest in stocks and bonds across industries.

Eisman, formerly with Connecticut-based FrontPoint Partners, left that company earlier this year as allegations a healthcare fund portfolio manager at the firm—Chip Skowron—had traded on insider information caused investors to bail.

An unnamed investor told Bloomberg that Eisman’s Financial Services fund had lost between 14% and 18% at the time he left. Eisman's funds had shrunk to $750 million in January from more than $1 billion in 2010. According to AR magazine, his Financial Horizons Fund, which invests in the stocks and bonds of financial services companies, fell 3.2% in Q1 2011 after having fallen 7.7% in 2010.

It was the Financial Horizons Fund that brought Eisman to prominence—it returned 81% in 2007 thanks to a bet on subprime mortgages, attracting the attention of author Michael Lewis. who included Eisman in his book The Big Short: Inside the Doomsday Machine, as one of the few people who saw the subprime crisis coming.

Reports have been swirling since June that Eisman planned to start his own firm with a team of six or so employees from FrontPoint.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note