ETF News

FrontPoint hedge fund got illegal tips -sources

BOSTON, Nov 2 (Reuters) - Hedge fund firm FrontPoint Partners LLC was the beneficiary of illegal tips into negative news from Human Genome Sciences Inc HGSI.O, several sources said.

Earlier on Tuesday, U.S. authorities filed criminal and civil fraud charges against a French physician, saying he leaked nonpublic information in late 2007 and early 2008 to a hedge fund. The authorities did not name the hedge fund.

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. Last month FrontPoint's partners said they are buying back a majority stake in the firm from investment bank Morgan Stanley MS.N.

Several calls to FrontPoint and Morgan Stanley were not immediately returned. (Reporting by Toni Clarke, Svea Herbst-Bayliss and Matthew Goldstein. Editing by Robert MacMillan)