FrontPoint Partners, the beleaguered hedge fund operation that completed a spinoff from Morgan Stanley in March, will reportedly “be winding down select strategies,” according to a report in The News York Times' Dealbook blog on Friday.
Redemptions are the cause, according to the Dealbook report. The fund’s assets had declined to an estimated $3.1 billion at the end of March from $7.5 billion as of last November, according to an article in Pension & Investments on March 1 announcing the completion of the spinoff.
A FrontPoint Partners portfolio manager, Dr. Joseph "Chip" Skowron, was accused by the SEC of “insider trading.”