Visium Asset Management, the $7 billion healthcare-focused hedge fund, told investors in a letter that it’s being investigated by the Department of Justice and the SEC.
“They have requested information from several years ago regarding the valuation of certain securities in the firm’s credit fund which was closed in 2013. Additionally, they have requested information regarding the trading of certain securities, including the use of a consultant who stopped providing services to the firm in 2011. We are providing the requested information to the Government,” the fund’s founder Jacob Gottlieb wrote in a letter dated March 7.
Gottlieb also wrote that they are not able to discuss the specifics of the investigations while they are ongoing.
Visium was founded in 2005. The firm employs 170 people with offices in New York, London and San Francisco.
“We expect only the highest ethical conduct from all our employees,” the letter said.
A Visium spokesman declined to comment beyond the letter.
The Wall Street Journal’s Gregory Zuckerman first reported the news.