A few weeks back, FrontPoint Partners' healthcare fund had its name in the press due to its association with a French doctor who allegedly passed one of its managers some hot tips. Not really that big a deal in the grand scheme of things (especially considering the firm itself was never actually charged with any wrongdoing) but apparently investors thought differently. They have redeemed en masse, forcing FrontPoint to liquidate the $1.5 billion fund. And now they need to sit down for a little chat re: the ways of the world.
What's most shocking about this news is that this group of individuals lacks the stomach for ONE measly not very scandalous at all insider trading scare. Do they see the investors of, for example, one of the world's most successful hedge funds, let's just call it SMACK Capital, redeeming every time someone connected to SMACK is suggested to be an insider trader? No, they don't and it happens all the time. In fact, no hedge fund worth its fees hasn't had its name whispered alongside the words 'insider trading' at least a dozen times. You want to invest with the best? Then man the fuck up or go by a Vanguard index mutual fund. And a word to FrontPoint next time you go raising capital-- more important that the minimum? A 'no pussies' clause and a forewarning that any stories of possible illegality set off an immediate gate.