Sunday, 28 December 2014
Last updated 37 min ago
Nov 3 2010 | 3:03am ET
FrontPoint Partners is the, until now, unidentified hedge fund that allegedly received inside information from a French doctor charged yesterday by U.S. authorities.
According to the Securities and Exchange Commission's complaint, Yves Benhamou used his position as an adviser to pharmaceutical company Human Genome to pass confidential information on the results of a hepatitis-C drug trial to at least six hedge funds. Those six hedge funds sold 6 million shares of Human Genome in December 2007 and January 2008 while in possession of confidential, negative information about those drug trials, the SEC said.
FrontPoint, which is being spun off from Morgan Stanley, sold all 3.3 million shares of Human Genome it owned in the first quarter of 2008, although it is unclear when the hedge fund sold those shares. Human Genome broke the bad news about the drug testing on Jan. 23, 2008, sending its stock price plummeting 44%.
FrontPoint has not been charged with any wrongdoing, although it has placed Chip Skowron, the co-portfolio manager of its health care hedge funds, on leave until the investigation is resolved. FrontPoint said it was "cooperating fully" with the authorities.
Benhamou was arrested on Monday in Boston on two criminal charges.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.