FrontPoint yesterday said in an investor letter that it had entered into a settlement with the SEC and that the payment won't have any financial impact on the fund.
"The alleged conduct of the former portfolio manager is completely contrary to FrontPoint's principles and represents a clear violation of FrontPoint's policy against insider trading," the hedge fund said yesterday in the letter.
Mark Lake, a spokesman for New York-based Morgan Stanley, declined to comment. Steve Bruce, a FrontPoint spokesman, declined to comment.