Visium Asset Management to Fire 24 Employees as Funds Shut

1469005124_Jacob-Gottlieb-

Jacob Gottlieb.

Photographer: Jacob Kepler/Bloomberg
  • This week AllianceBernstein called off deal to buy Global Fund
  • Visium winding down hedge funds amid probe by U.S. authorities

Jacob Gottlieb’s Visium Asset Management plans to fire 24 employees in New York as the firm liquidates its hedge funds following charges against three former employees.

The cuts are expected to start on Oct. 26 and continue for “a few months,” Visium said Friday in a New York Department of Labor notice. The firm said it has 110 employees in New York. Earlier this month, the company notified New York state that it planned to dismiss 33 employees.

Today’s notice comes just days after AllianceBernstein Holding LP ended its effort to buy Visium’s Global Fund, dealing another blow to the firm that once managed $8 billion. AllianceBernstein had struck a preliminary agreement to acquire the multisector hedge fund last month, after prosecutors charged three former Visium traders with securities fraud. Visium decided to shutter its four other hedge funds after the investigation spurred redemptions, then told clients it would also wind down the Global Fund.

A Visium spokesman had no immediate comment today.

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