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The rise and fall of a healthcare heavyweight.
In light of the recent turmoil at Visium Asset Management and the untimely death of former Visium PM Sanjay Valvani, Hedge Fund Intelligence took a look back at Visium's growth and evolution over the years.
Firm Overview
Founded in 2005 by Jacob Gottlieb
170+ employees as of 5/31/2016
Offices: New York, London, San Francisco
1/1/2016 AUM: $7.8 billion
6/1/2016 AUM: $7 billion
Insider Trading Investigation
March 7th - Firm discloses to employees that there is a federal investigation being conducted by the SEC and Department of Justice over trading and valuation issues. Visium also sends an investor letter stating that authorities "requested information from several years ago regarding the valuation of certain securities in the firm's credit fund which was closed in 2013."
May 4th - The Wall Street Journal reports that investors have requested to withdraw $1.5 billion from Visium.
June 15th - Federal prosecutors officially charge Valvani with insider trading and securities fraud. Two former Visium portfolio managers with securities fraud. Valvani pleads not guilty and is released on a $5 million bond.
June 17th - Firm announces plans to shutter. Gottlieb outlines in an investor letter the closing of their flagship vehicle, Visium Balanced Fund, and a deal to sell the Visium Global Fund to AllianceBernstein. Gottlieb states that 'given the uncertainty relative to the final outcome of the recent regulatory developments, the negative impact of the resulting publicity, and the substantial investor withdrawals, it became clear that maintaining the status quo was increasingly untenable for the firm.'
June 20th - Valvani is found dead in his home in an apparent suicide.
Billion Dollar Club
Date | AUM ($B) | Rank |
Jul-07 | 1.70 | 206 |
Jan-08 | 2.18 | 196 |
Jul-08 | 2.13 | 195 |
Jan-09 | 1.30 | 193 |
Jul-09 | 1.01 | 200 |
Jan-10 | 1.48 | 174 |
Jul-10 | 2.00 |