Launches & Closures Hedge Funds

FrontPoint plots five new strategies for its multistrategy fund, kills three


Mediocre performance has led FrontPoint to shutter three of the strategies in its $2.6 billion Multistrategy Fund, while prepping five more.

FrontPoint Partners, the $7 billion hedge fund arm of Morgan Stanley, is planning to launch five new strategies within its $2.6 billion FrontPoint Multistrategy Fund after having recently cut three.

The firm is now hiring teams to manage U.S. event-driven, global statistical arbitrage, direct lending, Australian long/short and emerging markets macro strategies, according to an investor call held in late January.

The global statistical arbitrage strategy will use a high-frequency price-based model, which will capture mean aversion and price momentum in high and low volatility market regimes. The emerging markets macro strategy will focus on directional moves in rates, foreign