(Business Insider) Visium Asset Management, a multibillion-dollar hedge fund, has imploded in the biggest scandal to hit the industry in years. The fund told investors of its plan to close in a letter Friday. It’s the most high-profile shutdown since authorities forced Steve Cohen’s controversial SAC Capital to close in 2013. <\/p>\n
A slew of factors \u2014 from a brewing insider-trading scandal to a contentious investment by Visium’s founder that rankled investors and staffers alike \u2014 led to Visium’s demise.On top of all of that, Visium’s flagship fund had been reporting dismal performance. Visium is selling one of its better performing funds to AllianceBernstein, it said.<\/p>\n
Just days before Visium announced the shut down, one of its top portfolio managers \u2014 Sanjay Valvani \u2014 was charged with wire and securities fraud. He is accused of using insider information from a Food and Drug Administration official to place trades on drug companies ahead of key FDA decisions from about 2005 through 2011.<\/p>\n