FrontPoint Decries Skowron’s Insider-Trading

Aug 18 2011 | 12:06pm ET

FrontPoint Partners has spoken out in the wake of the guilty plea of the man whose involvement in an insider-trading scandal brought the once-$7 billion hedge fund to its knees.

Joseph Skowron admitted that he sold shares of Human Genome Sciences after learning from a French doctor, who advised the pharmaceutical, that a hepatitis-C drug trial had produced disappointing results. By dumping FrontPoint’s 3.3 million shares of the company before the news became public, Skowron, the hedge fund’s former top healthcare fund manager, saved FrontPoint some $30 million.

“Dr. Chip Skowron now admits that, through his individual actions, he willfully violated FrontPoint’s principles, compliance policies and the code of conduct he signed,” FrontPoint said in a statement issued to HedgeFund.net. “Dr. Skowron lied and misled FrontPoint’s internal compliance team, the external counsel hired to independently investigate his actions, and the federal government. FrontPoint was never accused of any wrongdoing and has fully resolved this matter with the government.”

Despite that, FrontPoint investors headed for the exits; in May, the firm announced that it would wind down most of its hedge funds, including its flagship strategy.


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.