Skowron’s $1.5 billion healthcare fund was already shut down in the wake of the scandal, but now its clear his alleged actions are affecting the entire firm.
At first the Morgan Stanley subsidiary only suspended Skowron after allegations emerged that he traded on inside information from a French doctor.
Here’s what FrontPoint had to say about the layoffs, from Dow Jones, via the WSJ,
“We have, as a result of clients seeking a return of capital, made the extremely difficult decision to reduce staff by 28 positions — all among the non-investment team staff. These reductions will not impact our investment teams and overall client service.”
“FrontPoint is committed to maintaining our world-class investment services to our clients while making certain the firm is operationally and financially stable. We are grateful to those employees for their dedicated service to FrontPoint and our clients.”
Skowron hasn’t been charged with any wrongdoing.