AllianceBernstein signed a letter of intent Friday to take over management of the Visium Global Fund, a long/short equity hedge fund managed by Visium Asset Management.
The fund's investment team and some support staff will join the firm, an AllianceBernstein news release said. The transaction is subject to conditions, including any required investor approvals.
“The Visium Global Fund is a unique opportunity to further strengthen AB's alternatives platform. The fund has produced strong risk-adjusted performance since its inception in 2007, and enhances our ability to meet our clients' need for idiosyncratic alpha across market cycles,” said Peter S. Kraus, AB's chairman and CEO, in the news release.
Jacob J. Gottlieb, Visium Asset Management's founder, managing partner and chief investment officer, could not be reached for confirmation about the sale of the firm's hedge fund by press time.
Jonathan Gasthalter, a Visium spokesman, did not respond to requests for comment.
Two days ago, two Visium employees were charged with insider trading by the Securities and Exchange Commission in civil suits, according to an SEC news release. One of the two and a third defendant are charged with falsely inflating the value of securities in one of Visium's hedge funds. The trio face parallel criminal charges filed by the U.S. Attorney for the Southern District of New York, the SEC news release said. The alleged source of the tip also has been charged with insider trading by the SEC and U.S. attorney in civil and criminal cases. All of the cases have been filed in federal court in Manhattan.
Visium Asset Management has about $14.7 billion under management, including leverage, of which $1.6 billion is invested in the Visium Global Fund, according to the firm's most recent ADV filing with the SEC.