Michael Kelly, FrontPoint Partners

Michael (Mike) Kelly is the CIO and Co-CEO of Greenwich, Connecticut based multi strategy hedge fund FrontPoint Partners. In this interview, Mike discusses how his hedge fund has raised the bar after the events of 2008, and how multi strategy hedge funds address the increased demands for more transparency, reporting and risk disclosure.
Kelly explains the firm's risk management set-up and approach to liquidity management - essential responsibilities for a hedge fund manager, where negligence can be lethal.
He also discusses the implications of the ongoing institutionalization of the hedge fund industry, which in his view could lead to the emergence of some major hedge fund complexes with assets in the order of $50-100 billion.
FrontPoint Partners was founded in November of 2000 by members of Tiger Management (where Kelly worked before joining FrontPoint in 2001) and Soros Fund Management. In 2006, the firm was acquired by Morgan Stanley. The fund currently runs about $7bln in 16 investment strategies: Equities, Credit, Macro and Event-Driven.