Visium Asset Management
Visium Asset Management was a New York-based American multi-strategy hedge-fund and private-equity firm that was wound down after a major securities-fraud investigation.
Last updated August 31, 2026
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Overview
Visium Asset Management LP was an American investment firm established in 2005 by Jacob Gottlieb. It began as a healthcare-focused investment manager and developed into a broader multi-strategy hedge-fund platform with exposure to healthcare equities, distressed debt, credit opportunities and other investment strategies. The firm also explored private equity and, according to contemporary reporting, sought to raise capital for a dedicated private-equity fund. Visium grew from a relatively small, family-connected business into a substantial alternative-asset manager. At its height in 2016, it reportedly managed at least $8 billion in assets. In 2015, its platform included five hedge funds and a mutual fund. The firm’s flagship healthcare strategy was managed by Sanjay Valvani, while Christopher Plaford and Stefan Lumiere were associated with its Credit Opportunities Fund, which invested in distressed debt and other credit instruments. The business also attracted scrutiny over governance and conflicts of interest. Members of Gottlieb’s family worked at or advised the firm at different points. His father had a desk at the New York office until 2010 and sometimes informally advised on accounting matters, while his brother Mark held several positions at Visium. Bloomberg News also reported that Lumiere had a family connection to Gottlieb. Separately, Gottlieb personally owned pre-IPO shares of Intercept Pharmaceuticals while Visium itself held a significant position in the company. The arrangement generated at least one investor complaint and allegations from employees that the firm applied inconsistent ethical standards. Regulatory and criminal investigations became the defining event in Visium’s history. Former trader Jason Thorell told the U.S. Securities and Exchange Commission that employees had sought sham broker quotations and departed from third-party pricing in order to support inflated valuations for debt securities. He later cooperated with federal investigators and secretly recorded conversations involving people connected to the firm. In March 2016, Visium told investors that the U.S. Department of Justice and the SEC were investigating its treatment of assets in the Credit Opportunities Fund, which had been closed in 2013. The disclosure contributed to substantial investor withdrawals. In June 2016, federal authorities charged three Visium traders in cases involving alleged insider trading and the inflation of fund asset values. Valvani was accused of trading on confidential information concerning pending Food and Drug Administration drug approvals. Plaford was accused of participating in the overvaluation of credit-fund assets and later pleaded guilty to securities fraud. Lumiere was convicted after trial and received an 18-month prison sentence, three years of supervised release and a $1 million fine. Valvani was indicted, released on bail and found dead in an apparent suicide five days after his indictment; the case against him was subsequently dropped because of his death. The investigation and associated withdrawals effectively ended Visium as an operating investment platform. The firm began liquidating funds in 2016, including the sale of the Visium Global Fund to AllianceBernstein. In 2018, after negotiations with the SEC, the company agreed to forfeit $10.2 million to regulators in exchange for permission to shut down. Visium later operated under the name VA Management LP, but by 2019 the original Visium business had ceased to function as a conventional investment-management firm.
History
Visium Asset Management was founded in 2005 in New York by Jacob Gottlieb as a healthcare-focused investment firm. The company later expanded into a multi-strategy alternative-asset platform, managing hedge funds, a mutual fund and credit-oriented vehicles. Its Credit Opportunities Fund invested in distressed debt and related instruments, while the firm’s healthcare strategies focused on companies and events connected to the pharmaceutical and biotechnology industries. The firm retained a strong family-business character during its early years. Gottlieb’s father maintained a desk at the New York office until 2010 and occasionally provided informal accounting advice. Gottlieb’s brother Mark also worked at Visium in multiple capacities. Stefan Lumiere joined the firm in 2007 and ultimately worked under Christopher Plaford in the Credit Opportunities Fund. These relationships later became part of reporting and criticism concerning possible conflicts of interest. Visium grew considerably and reached at least $8 billion in assets under management at its reported peak in 2016. In 2015, it was described as managing five hedge funds and a mutual fund, while it was also seeking approximately $500 million for a possible private-equity fund. The firm’s growth was disrupted by questions regarding pricing and valuation practices. Former trader Jason Thorell told the SEC in 2013 that employees had obtained purported broker quotations to support inflated values for debt securities and had deviated from independent third-party prices. Thorell subsequently assisted federal investigators by recording conversations over a two-year period. The regulatory crisis became public in March 2016, when Visium notified shareholders that the Department of Justice and the SEC were examining conduct involving the Credit Opportunities Fund, which had been closed in 2013. Investor withdrawals accelerated after the disclosure. In June, federal authorities brought charges against three traders. Valvani was accused of insider trading based on confidential information about pending FDA drug approvals. Plaford and Lumiere were accused of manipulating or supporting inflated valuations in the credit fund. Valvani pleaded not guilty, was released on bail and died in an apparent suicide five days after his indictment. The charges against him were consequently abandoned. Plaford pleaded guilty to securities fraud and was permanently barred from the securities industry by the SEC. Lumiere went to trial, was convicted and was sentenced to 18 months in prison, three years of supervised release and a $1 million fine. Former Chief Financial Officer Steven Ku separately agreed to a one-year industry bar and a $100,000 payment to settle SEC allegations that he failed to supervise Plaford and Lumiere. The criminal cases and regulatory scrutiny destroyed the firm’s operating business. Visium began liquidating its funds in 2016 and sold the Visium Global Fund to AllianceBernstein. In 2018, it reached an agreement with the SEC involving a $10.2 million forfeiture and permission to close. By August 2019, the remaining entity was operating under the name VA Management LP. A later action by Visium against Valvani’s widow and estate, seeking recovery of more than $100 million, was dismissed in 2020 because the court found that the statute of limitations had expired.
- 2020
Recovery lawsuit dismissed
[1]A lawsuit against Valvani’s widow and estate was dismissed on statute-of-limitations grounds.
- 2019
Remaining entity operates as VA Management LP
[1]The remaining operation was reported under the name VA Management LP.
- 2018
SEC wind-down agreement
[1]Visium agreed to forfeit $10.2 million to regulators in an arrangement permitting the firm to shut down.
- 2016
Investigation and criminal charges
[1]Visium disclosed DOJ and SEC scrutiny, followed by charges against three traders and substantial investor withdrawals.
- 2016
Fund liquidation begins
[1]The firm began winding down its funds and sold the Visium Global Fund to AllianceBernstein.
- 2015
Multi-fund platform reported
[1]Contemporary reporting described Visium as managing five hedge funds and a mutual fund while pursuing capital for a proposed private-equity fund.
- 2013
Credit Opportunities Fund closed
[1]Visium shut the Credit Opportunities Fund, whose valuation practices later became central to federal and SEC investigations.
- 2007
Stefan Lumiere joins Visium
[1]Lumiere joined the firm and later worked in the Credit Opportunities Fund.
- 2005
Visium founded
[1]Jacob Gottlieb established Visium as a healthcare-focused investment firm.
Products and positioning
An alternative-investment manager combining healthcare investing with multi-strategy hedge-fund and credit investing. Its reputation ultimately became associated with the alleged manipulation of fund valuations, insider-trading prosecutions and liquidation.
Global hedge fund
Visium Global Fund
A global investment fund operated by Visium and later sold to AllianceBernstein during the firm’s liquidation. The available reference material identifies the fund as part of Visium’s winding-down process but does not provide a complete description of its strategy or portfolio.
Credit and distressed-debt fund
Visium Credit Opportunities Fund
A fund focused on credit opportunities and distressed debt. It was closed in 2013 and later became the subject of DOJ and SEC investigations concerning alleged valuation practices involving debt securities.
Healthcare-focused hedge funds · 2005
Visium healthcare funds
Visium’s original and flagship investment activity centered on healthcare companies and healthcare-related events. Sanjay Valvani managed the flagship healthcare fund and was alleged by federal authorities to have traded on confidential information concerning pending FDA drug approvals.
Mutual fund
Visium mutual fund
One of the pooled investment products reported as part of Visium’s 2015 platform. The reference material does not identify its name, investment mandate or subsequent disposition.
Controversies
2020
Visium claim against Valvani estate dismissed
Visium sought more than $100 million from Valvani’s widow and estate, alleging losses from illegal conduct and breach of fiduciary duty. The New York Supreme Court dismissed the suit based on the expiration of the statute of limitations.
2017
Stefan Lumiere securities-fraud conviction
Lumiere was convicted after trial for securities fraud connected to alleged overvaluation of credit-fund assets. He received an 18-month prison sentence, three years of supervised release and a $1 million fine.
2017
SEC action involving former CFO Steven Ku
Steven Ku agreed to a one-year securities-industry bar and a $100,000 payment to settle allegations that he failed to supervise portfolio managers Plaford and Lumiere.
2016
Securities-fraud and insider-trading investigation
The DOJ and SEC investigated Visium’s conduct involving the Credit Opportunities Fund. Federal authorities charged Sanjay Valvani, Christopher Plaford and Stefan Lumiere in cases involving alleged insider trading and inflated valuations. The investigation caused investor withdrawals and led to the firm’s liquidation.
2016
Death of Sanjay Valvani after indictment
Valvani was indicted over alleged insider trading involving confidential FDA drug-approval information and was found dead in an apparent suicide five days later. The government case against him was dropped because of his death.
2016
Christopher Plaford securities-fraud case
Plaford was accused of helping inflate the value of assets in the Credit Opportunities Fund. He pleaded guilty to securities fraud and was permanently barred from the securities industry.
Brand decisions
2018
Agree to regulatory settlement supporting closureStrategyBackground
Visium negotiated with the SEC while winding down after the securities-fraud investigation.
Action taken
The firm agreed to forfeit $10.2 million to regulators in exchange for being allowed to shut down.
Aftermath
The agreement formalized the end of Visium’s operating investment business.
Regulatory forfeiture. $10.2 million (2018)
2016
Begin liquidation and wind-downStrategyBackground
Investor withdrawals and criminal and regulatory investigations undermined Visium’s fund platform after the firm disclosed scrutiny of its Credit Opportunities Fund.
Action taken
Visium began liquidating its funds and sold the Visium Global Fund to AllianceBernstein.
Aftermath
The firm ceased operating as a conventional investment manager and later operated under the name VA Management LP.
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