The last two decades have seen Jacob Gottlieb shape himself into a brand in the alternative investment industry, only to have it torn down by controversy. During this time he started the all-successful Visium Asset Management Company and grew it into a $8 billion hedge fund in less than a decade. But the Securities Exchange Commission would soon tear down this empire after charging some of Gottlieb’s portfolio managers with different financial frauds including insider trading and mismarking.
Started in 2005, Visium peaked when it showed great potent for growth when it managed to accumulate more than $8 billion in managed assets by the turn of its first ten years of operation. The company operated numerous investment vehicles with a key emphasis being a flagship healthcare fund that Gottlieb started in 2001. The fund had become of the best performing investment vehicles within the company and also the center of the controversy that saw the firm deregistered and forced to liquidate customer assets in 2016.
The future of the firm turned foggy in early 2016 when federal prosecutors charged top Visium Portfolio managers for trading on confidential government reports. They were charged with insider trading and inflating the paper value of bonds and fixed assets held by the firm. SEC would close in on the case by deregistering the firm and forcing it to wind down the same year, a process that took Jacob Gottlieb close to two years. He was, however, never accused of any wrong doing in these cases.
Long break and Altium capital
Gottlieb has for the past two years been liquidating Visium’s assets and holdings and refunding investor funds. And while most individuals may misrepresent this as a long break from the industry, the medical doctor by profession begs to differ.
He claims that the complex and long winding down process was never a break from the trade since he was essentially liquidating active assets within the same industry. Expressing his undying interest in investment, and hinting to a possible comeback, the experienced investor added that he started trading in his teenage years and hopes to carry on with it for the rest of his life.
To further approve his presence in the investment circles, the 46-year-old set up Altium Capital, a family office charged with a primary responsibility of managing his personal wealth. The firm that currently employs six traders mimics Visium’s healthcare fund model by investing and betting on stocks relating to the healthcare industry.
Plotting a comeback
Now that he is done with liquidating Visium, Jacob feels ready to get back into the investment world. He has even hinted out at organizing a round of investor funding though the details about the date, how much he hopes to raise or the investment outfit he hopes to use for these investments remain scanty. It would be interesting to see whether he expounds on his Altium pet project or launches a new investment firm altogether.
In either case, such an investment company would invest heavily within the healthcare industry that Jacob Gottlieb believes is ripe for trade. He notes that the last five years have seen a massive significant number of these industry players go public and bets any experienced investor can make a fortune from the value creation and value destruction being experienced in the sector.
The series of prosecutions against Gottlieb’s top portfolio managers may have laid his Visium hedge fund to waste and shaken him financially, but they haven’t killed his resolve. Right from liquidating one company and the finance and healthcare titan is already organizing a round of investment after picking himself up with his family based Altium Capital.