FrontPoint Partners Received "Illegal Tips" From French Doctor

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Earlier today French doctor Yves Benhamou was charged with passing on some hot info about Hepatitis C to an unnamed hedge fund, which didn't seem to make any money off of the tip but avoided losing $30 million by a timely sale of six million shares of drug maker Human Genome Sciences. The fund was not named, but according to Matthew Goldstein at Reuters, it's FrontPoint Partners, which has suspended a trader named Dr. Chip.

FrontPoint Partners oversees roughly $7 billion in assets, including in healthcare funds. It has offices in Greenwich, Connecticut; New York; and London. The fund's healthcare-focused group was formed in 2003 when Chip Skowron, Jason Bonadio and Ajay Bhalla joined the firm from rival hedge fund firm SAC Capital Management.

According to the firm, they are "cooperating fully with this investigation" and "have placed Dr. Chip Skowron on leave pending the outcome of the investigation."

Sources: FrontPoint Hedge Fund Got Illegal Tips [Reuters]

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