Marketing vs. Investing
A lot of ink has been spilled over the insider trading scandals. We’ve been following it pretty closely, but haven’t had much to add to the discussion until we read this article about Frontpoint’s Chip Skowron III in the Wall Street Journal. The article focused on whether Skowron broke the law, but what caught our eye was something else:
Last year, Dr. Skowron became less involved in day-to-day oversight of investments in FrontPoint’s big health-care funds to focus on marketing the funds to investors, people familiar with the matter said.
What we find particularly amazing is that nobody seems to think that this was inappropriate behavior. Not the person who told the newspaper, not the reporter who casually mentioned it in the middle of the article, not the thousands of people who read it and not the investors in Frontpoint’s other funds. As Michael Kinsley said about Washington: the real scandal isn’t what’s illegal, it’s what’s legal.