FrontPoint Reports New J.P. Morgan, Seagate Stakes

FrontPoint Partners bought new stakes of 1.1 million shares of Seagate Technology Inc. (STX) and about half a million shares of J.P. Morgan Chase & Co. (JPM) during the fourth quarter, according to a securities filing Monday.

Its new stakes in Seagate Technology and J.P. Morgan are worth about $15.2 million and more than $24 million, respectively, as of yesterday's close.

It also disclosed it eliminated its positions in MasterCard Inc. (MA) and Visa Inc. (V)

The Greenwich, Conn.-based hedge fund firm, which is owned by Morgan Stanley (MS), has been wrestling with fallout from an insider-trading probe for the past several months.

In early November, prosecutors accused a French doctor of illegally alerting a fund manager with insider information about a clinical drug trial. FrontPoint has laid off the manager, Joseph F. Skowron III, and the rest of the healthcare team. Morgan Stanley and FrontPoint have said they are cooperating with authorities and that they have not been accused of wrongdoing.

Due to the probe, FrontPoint shed stakes in healthcare stocks during the fourth-quarter as it liquidated its healthcare funds. Among the healthcare positions eliminated were 1.9 million shares of GlaxoSmithKline PLC (GSK) and 1.3 million shares of Aetna Inc. (AET).

Many investors who manage more than $100 million are required to disclose most securities holdings within a month and a half of the end of a quarter. The filings give the public a relatively fresh look at the portfolios of well-known investors.

-By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@dowjones.com;

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