Eisman to Leave FrontPoint Partners

Steve Eisman, the colorful hedge fund manager who made a fortune betting against the subprime mortgage market, is leaving FrontPoint Partners, according to people familiar with the matter.

His departure is another blow for the hedge fund firm, which came under pressure last year amid an insider trading scandal. The controversy prompted investors to pull billions of dollars from FrontPoint, a loss of capital that led the firm to close most of its funds last month.

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Mr. Eisman said he was disappointed that his fund had experienced heavy redemption requests as a result of the scandal, despite the fact that his funds were completely unrelated to it.

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While the firm has not been accused of wrongdoing, a former FrontPoint portfolio manager, Joseph Skowron, was charged by federal authorities in April. Mr. Skowron is accused of paying for inside tips about a clinical drug trial, information that helped his fund avoid $30 million in losses.

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Mr. Eisman is the most prominent manager at FrontPoint, thanks in large part to a leading role he played in "The Big Short," Michael Lewis's best-selling book about the financial crisis.