Jacob Gottlieb is the founder of a hedge-fund firm that was shut down after the unveiling of an insider-trading scandal. However, despite the scandal that almost crippled his career, Jacob Gottlieb is ready to begin a fresh by launching yet another hedge fund firm. After liquidating Visium Asset Management LP in 2016, he is still considering raising more money from his clients.
Visium Asset Management LP was shut down after the staff was charged with insider trading and mismarking which is inflating the value of assets in a bond portfolio. However, despite all this Jacob Gottlieb was not accused of any wrongdoing. In fact, he says that within the last two years leading up to the demise of his investment firm, he had to make do without any compensation. During this time, he tried his best to liquidate the portfolios as efficiently as possible.
Visium was founded ay back in 2005. At the peak of the company’s success, it managed around $8 billion. From the Visium Balanced Fund, the company gained returns at the steady rate of 14.3% annually beginning on April 2001 all the way to the end of 2015. All this was reported in a document that was reviewed by The Wall Street Journal.
In 2016, Sanjay Valvani was charged by federal prosecutors for trading confidential government information about generic drug approvals. However, strangely enough, only days after he was charged, Sanjay Valvani was discovered dead in his home. His death was ruled a suicide.
At the same time, prosecutors charged Stefan Lumiere with trying to mismark securities in a fixed income fund. Although he pleaded not guilty, he was sentenced to 18 months in prison followed by three years’ supervised released and a $1 million fine. Yet another portfolio manager, Christopher Plaford, was charged with mismarking. He has since pleaded guilty and is yet to be sentenced.