FrontPoint Partners founder Philip Duff’s second effort to start a new hedge fund business is going about as badly as did the first.
Duff’s Massif Partners has cut more than half of its staff as it struggles to raise money from institutional investors, Bloomberg News reports. The Greenwich-based firm currently employs just 15 people, down from 35 in March.
Indeed, the struggles have led Duff to abandon the whole idea of a hedge fund business, per se. While he once saw Massif as a one-stop shop for institutional investors, offering advisory, risk management and investment services, Duff has now abandoned plans to launch or even raise money for hedge funds, instead focusing on lower-cost funds.
Duff is currently focused on marketing its money-management services to about 50 institutional investors, including pension funds, insurance companies, endowments and foundations.
Massif’s seed capital ran out in February; Duff has been covering the firm’s payroll since then. Among those no longer on it are Jim Creighton and his team of five. Creigton told Bloomberg that his Creighton Capital Management “is no longer affiliated with Massif.”