U.S. Markets

Hedge fund manager Steve Eisman shuts down Emrys Partners

BOSTON (Reuters) - Hedge fund manager Steve Eisman, whose bet against the overheated housing market earned him a starring role in a best-selling book, has closed down his fund, a person familiar with the fund said.

Eisman founded Emrys Partners two years ago, becoming the latest prominent manager to go off on his own. He closed the fund over the course of the last few weeks, this person said.

Previously Eisman worked at FrontPoint Partners, which was forced to shut down after one of its portfolio managers was involved in insider trading. Joseph “Chip” Skowron, who had run a healthcare portfolio at FrontPoint, plead guilty to insider trading and is now in serving a prison term.

Eisman was not immediately available to comment.

Hedge Fund Alert, which broke the news about the liquidation, said Eisman had roughly $185 million in assets after having started with $23 million.

Starting a new hedge fund has proven to be very difficult even for managers with long resumes, industry analysts said, noting that big investors tend to shy away from start ups which makes it tough to raise money.

Eisman and his team earned a 66.2 percent gain in 2007 with their bet against the sub-prime mortgage market, earning him a spot in Michael Lewis’ best-selling book “The Big Short.”

Reporting by Svea Herbst-Bayliss; editing by Andrew Hay