Jacob Gottlieb, who owned Vissium Asset Management LP, is on the verge of launching his new business venture, Altium Capital. His former hedge-fund was founded in 2005, and managed approximately $8 billion at its peak. Despite its success, Gottlieb ended up closing the firm after an insider trading scandal erupted. In 2016, Sanjay Valvani, who was the firm’s portfolio manager, was charged by federal prosecutors with trading on confidential government information.
In addition, Stefan Lumiere, the former portfolio manager at Visium was accused by prosecutors with trying to mismark securities. He pleaded not guilty and was sentenced with a $1 million fine, 18 months in prison, and 3 years of being supervised. Jacob Gottlieb himself was never charged and was cleared of any wrongdoing associated with the scandal. From his role as the Chief Executive Officer he returned funds to the investors and continued to wind down the company for 2 years. He notes that he did not have the luxury to take a long break due to his busy schedule with liquidating the portfolios as efficiently as possible.
Gottlieb stated that he loves investing, that it is what he’s done since he was a teenager, and he expects to continue doing it for the rest of his life. In addition he mentioned that he is focused on investing again. He formed the family office called Altium Capital, which primarily manages his personal wealth, the office having 6 employees. Similar to Visium, Altium focuses on investing in the health-care industry, and already made bets on stocks in that area. The firm’s Chief Operating Officer is Gottlieb’s brother, Mark Gottlieb.
Due to Gottlieb’s medical background, he notes that for a new hedge fund which focuses on the healthcare sector. He mentioned that there have been a large number of companies over the last 5 years that went public, pointing out that the value creation as well as the value destruction is going to be large. According to him, the strategy behind the new hedge fund is going to be similar to one of Visium’s largest funds, being focused on methodical and thoughtful research.