By Dow Jones Business News,
July 03, 2014, 03:12:00 PM EDT
By Juliet Chung
Steve Eisman, who emerged as one of the stars of the financial crisis with a winning bet against mortgages, is
shuttering his hedge-fund firm, according to people familiar with the matter.
Emrys Partners LP, which Mr. Eisman founded a little over two years ago, bet on and against stocks and had at one
point reached about $200 million. It was wound down at the end of June, one of the people said.
While Emrys gained 3.6% and 10.8% in 2012 and 2013, respectively, its performance lagged behind that of the bull
market. It was down this year, one of the people said.
Mr. Eisman declined to comment Thursday.
Mr. Eisman's profile grew at the hedge-fund where he previously worked, FrontPoint Partners, which was once owned
by Morgan Stanley and where he had managed more than $1 billion. Besides his bet against mortgages, he was known for
shorting, or betting against, for-profit education companies and lobbying against the industry in Washington. He was
featured in the best-selling book about the financial crisis, "The Big Short."
He started Emrys in March 2012 after leaving Frontpoint, which in 2010 was ensnared in an insider-trading probe
involving a former hedge-fund manager there. Frontpoint closed under the weight of the scandal.
According to a regulatory filing, Emrys employed eight people.
The trade publication Hedge Fund Alert earlier reported the closure.
In a May regulatory filing, the firm wrote it believed that "making investment decisions by looking solely at the
fundamentals of individual companies is no longer a viable investment philosophy."
Instead, Emrys echoed what many stockpickers have said in recent years about larger factors affecting their ability
to invest as they had historically. "While individual company analysis will always be important," it said, "the health,
or the change in the health, of the financial system is the starting point of all analysis."
Write to Juliet Chung at email@example.com
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