Hedge Fund Legend Steve Eisman Wants To Escape From Scandalized, Money-Losing FrontPoint

Legendary hedge fund manager Steve Eisman wants to consolidate losses after a dismal 2010.

Sources tell the WSJ he is thinking about leaving FrontPoint Partners to start his own hedge fund. Unfortunately, his reputation has taken a significant hit since the golden days of his subprime short.

Last year sucked because another manager at FrontPoint, which is owned by Morgan Stanley, was ensnared in the insider trading investigation.

Eisman personally, like other short-sellers, was foiled by a rising stock market. His funds lost about 6% in 2010.

FrontPoint’s outlook without Eisman would be ugly, which is why Morgan Stanley is considering axing, not spinning off, the hedge fund, according to the Journal.

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