Hedge fund Visium shuts one fund, offers another in wake of expert trading case
By Svea Herbst-Bayliss NEW YORK (Reuters) – Hedge fund Visium Possession Management, which has been embroiled in an expert trading case, told investors on Friday night that it will shut down its flagship fund and sell another portfolio to possession manager Alliance Bernstein. Jacob Gottlieb, who founded the company 11 years earlier, divulged the news in a letter just 2 days after the United States federal government charged a Visium partner with expert trading for having actually apparently utilized private ideas about drug regulatory approvals. “Given the uncertainty relative to the final result of the current regulatory developments, the unfavorable effect of the resulting publicity, and the substantial investor withdrawals, it became clear that preserving the status quo was increasingly untenable for the company,” Gottlieb wrote in the letter, which was seen by Reuters. Visium expects to sell its Visium Global Fund to AllianceBernstein. Gottlieb said the fund’s financial investment team and some assistance personnel will relocate to the New York-based possession management firm, but that he will not be switching over. Visium will be shutting down its health-care-focused Visium Balanced Fund LP and related portfolios and informed financiers in the letter that they will be informed individually about details. To alleviate all investors relatively, the letter said that Visium would start returning money to clients later this summertime. However some cash will be kept back to “establish a reserve for possible liabilities and other contingencies,” the letter said. Federal authorities on Wednesday jailed Sanjay Valvani, a Visium partner who focused on trading pharmaceutical stocks, and implicated him of having actually fraudulently made $25 million by acquiring advance word about U.S. Fda approvals of generic drug applications. Valvani pleaded not guilty to 5 counts consisting of securities scams, wire fraud and conspiracy and was released on $5 million bond protected by his house. (with additional report by Jonathan Stempel, modifying by Cynthia Osterman and Leslie Adler) OLUSMONEY Reuters United States Online Report Cash 20160617T234436 +0000 Disclaimer: Combination Media want to remind you that the data consisted of in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex rates are not provided by exchanges however rather by market makers, therefore prices might not be precise and might vary from the actual market price, meaning costs are a sign and not appropriate for trading purposes. Therefore Blend Media does n`t bear any duty for any trading losses you might incur as an outcome of utilizing this information. Fusion Media or anyone involved with Blend Media will not accept any liability for loss or damage as a result of reliance on the information including information, quotes, charts and buy/sell signals contained within this site. Please be completely informed regarding the risks and costs associated with trading the financial markets, it is among the riskiest investment types possible.