Visium Considers Sale Amid Investigation for Alleged Insider Trading
June 01 2016 - 6:10AM
Dow Jones News
A hedge-fund firm under investigation for alleged insider
trading is exploring a sale of all or part of its business,
according to people familiar with the discussions.
Visium Asset Management LP has talked to potential buyers in
recent weeks about a stake in the firm or a larger deal, these
people said. The potential investors include New York-based asset
manager AllianceBernstein LP, the people said.
A transaction could come as early as this week, the people said,
although there is no guarantee an agreement will be reached.
A spokesman for Visium declined to comment.
The firm, which specializes in health-care stocks, told staff
and clients in March that it had received inquiries from the
Justice Department and the Securities and Exchange Commission, The
Wall Street Journal reported at the time. The spokesman declined to
comment on the matter, but Visium said in a letter to investors in
March that it was "providing the requested information to the
government."
In addition to the probes, Visium has recently received
redemption requests from clients after a difficult patch of
performance.
The firm's flagship Balanced Fund, for example, was down 10.5%
through May 20, according to investors.
Visium was started in 2005 and has offices in New York, London
and San Francisco. It is run by Dr. Jacob Gottlieb, who has a
medical degree from New York University Medical School.
Write to Rob Copeland at rob.copeland@wsj.com and Sarah Krouse
at sarah.krouse@wsj.com
(END) Dow Jones Newswires
June 01, 2016 05:55 ET (09:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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