Early 2016, Jacob Gottlieb, who was the chief investment officer of Visium Asset Management LP liquidated his firm following an insider-trading scandal. The closure of the firm was prompted from indictments against the staff for miscalculating security values to overcharge investors and deceive them on the liquidity of the funds and other scandals. Mr. Gottlieb, however, was excused from any misconduct in the scandal. Despite the downfall of his company, Jacob, who is zealous about investing pledged to the world that he would make his comeback in the investment world.
Several People working at the hedge fund were charged with several allegations and suffered huge losses. A Visium portfolio manager Sanjay Valvani was accused of making transactions on critical government information on generic-drug approvals. Days after the accusation and charges, a partner at Visium’s Healthcare-Focused Fund was discovered dead in his home in controversial suicide circumstances.
Stefan Lumiere, Portfolio manager at the firm, was also indicted of mismarking securities with the motive of overcharging investors. After pleading not guilty, he was convicted for 18 months in prison, three years supervised release, and a $1million fine. Several other people went down with the firm which affected their profession to date such as Lumiere who has been barred by the Securities and Exchange Commission on working in the securities industry.
Since the closure of the Hedge Fund, Mr. Gottlieb has been waiting for the appropriate time to introduce a new hedge fund. He has finally managed to plan a Return in the market through Atrium Capital. He has established Altium Capital as a family office with a capacity of six employees involved mostly in the management of his wealth. His firm will emphasize investing in healthcare and is already making bets on the stocks in the sector. Gottlieb has said that the strategy of the new fund whose Chief Operating Officer is Mark Gottlieb, Jacobs’s brother will be similar to Visium’s most substantial funds but with a different focus based on systematic research.