FrontPoint Partners, a US hedge fund bought by Morgan Stanley three years ago, has replaced its parent with rival UBS as a prime broker to one of its funds. The move comes just two months after Morgan Stanley hired the former global head of prime services at the Swiss bank.

The Greenwich, Connecticut based group, which was founded in 2000, said in an exchange announcement in Ireland yesterday that it had replaced Morgan Stanley with UBS as prime broker to its offshore European hedge fund.