Jacob Gottlieb still serves in the capacity of chief investment officer and the managing partner of Visium Asset Management. Visium Asset Management acts as an alternative investment advisor whose main commitment is in the generation of quality non-correlated returns in different market environments. In November 2005, Jacob Gottlieb and other 20 investment professionals founded Visium.
Jacob Gottlieb’s background experience in both finance and medicine made him the perfect match capable of running the firm. This firm revolved around health and finance aspects. He worked at Balysny Asset Management (BAM) where he was the top earner of that firm, while still working here, he built both his reputation and that of his team. Jacob Gottlieb was eager to manage more money, and it was at this point that together with his team left Balyasny Asset Management. They left the firm with approximately $300 in seed capital that started their firm. Visium soon became a success with 170 employees and a whopping $8 billion dollar hedge fund.
Visium’s humble beginnings
The initial plan of Jacob Gottlieb encompassed the development of fund into key players in the industry. The firm was initially focused on a fund that went to health-care. The firm soon grew to focus on other areas, a move that saw the firm grow to approximately $8 billion in 2016 from $4 billion in 2013.
Insider trading and bond mismarking charges
The federal government soon imposed accusations citing insider trading practices against some Visium traders. The three traders accused were Chris Plaford, Stefan Lumiere, and Sanjay Valvani. Chris Plaford worked under credit division. He pleaded guilty on claims of using bogus bond quotes that mismarked bond values. Stefan Lumiere was found guilty. Sanjay Valvani was the firm’s money manager and was found guilty of insider trading. Sanjay committed suicide thereafter. The allegations revealed that the firm had repeated pay and mispricing issues. Their case unearthed almost 300 occasions of these illegalities indicating the firm’s endemic problem.