Visium Asset Management is being investigated by the U.S. Department of Justice and the Securities and Exchange Commission, Jacob Gottlieb, chief investment officer and managing partner, told investors on Monday in a letter obtained by Pensions & Investments.
The firm, which manages $8 billion in alternative investment strategies, primarily hedge funds, has been asked by federal authorities to provide information about the valuation of some securities in a Visium credit fund that was shut down in 2013, Mr. Gottlieb wrote. Authorities also want information about the “trading of certain securities, including the use of a consultant who stopped providing services to the firm in 2011,” Mr. Gottlieb’s letter stated.
Mr. Gottlieb said the firm is cooperating with the information requests.
“Visium was founded in 2005 and we have always embraced a strong culture of compliance,” Mr. Gottlieb stated, adding that “we expect only the highest ethical conduct from all of our employees.”
Mr. Gottlieb was not available for an interview, a spokesman said.
Kevin Callahan, an SEC spokesman, said the commission could not comment on the Visium investigation.
Department of Justice Spokesman Peter Carr did not return a call seeking comment by press time.