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Portfolio > Asset Managers

Ivory Leaves FrontPoint

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NEW YORK (–One of the hedge fund firms in the FrontPoint Partners LLC multi-strategy group has cut ties there, following industry rumors of an impending breakup.

Ivory Investment Management LP announced that it has reached an agreement with FrontPoint to end a collaboration that began in mid-2003.

According to a press release, the firms agreed to a separation plan transferring services like accounting and marketing from FrontPoint to Ivory, which is taking over these functions for itself and expects no interruption in its operations.

Ivory, a Los Angeles-based long/short manager with a fundamental value approach to equity and debt markets, is led by Curtis Macnguyen. It recently opened a New York office, headed by Chris Fox. Ivory managed close to US$2 billion of assets according to a regulatory filing in February 2005.

The various managers affiliated with FrontPoint in combination managed US$6 billion as of late last year. The firm finds capital for new funds and performs back-office, risk control and other services, leaving the managers to focus on investing.

In general, the parties can grow dissatisfied with what they get from such arrangements. Successful managers in particular have been known to chafe at having to pay part of their fee income to another party.

Ivory and FrontPoint executives would not comment on the split.

Morgan Stanley has shown interest in acquiring FrontPoint.

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Contact Bob Keane with questions or comments at [email protected].


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