MutualFundWire.com: A New York Alts Shop Enters '40 Act Country

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Monday, August 19, 2013

A New York Alts Shop Enters '40 Act Country

Let's us introduce you to the newest immigrant to '40 Act Country.

New alts firm Visium Asset Management, a seven-year-old shop which manages over $4.7 billion in assets across six private funds, has launched the Visium Event Driven Fund (VIDVX) [SEC filings].

According to this SEC filing, the will be run by: Francis Gallagher, director and portfolio manager, and Peter Drippé, portfolio manager. They've served as PMs of the fund since it started operations in May.

The Special Situations Strategy is managed by Gallagher, a 29-year industry veteran who joined Visium in 2011 upon the completion of a strategic transaction with Catalyst Investment Management Co., according to a press release. This strategy invests in opportunities where particular anticipated events in a company’s life cycle could lead to a significant increase in the security’s value over a specific period of time.

Drippé manages the Merger Arbitrage Strategy, which invests in securities where there may be an opportunity to capture the spread between the security price at announcement and the price upon completion of a transaction. Mr. Drippé has 28 years of industry experience and joined Visium with Mr. Gallagher in 2011.

This SEC filing reveals more about the fund's strategies. For example, it seeks to achieve capital growth while maintaining a low correlation to the U.S. equity markets. It will employ an event-driven investment approach targeting the equity and fixed income securities of companies that the Adviser believes will be impacted by pending or anticipated corporate events.  Such corporate events include, but are not limited to, mergers, acquisitions, spin-offs, bankruptcy restructurings, stock buybacks, industry consolidations, large capital expenditure programs, significant management changes, self-liquidations or other similar events.

The types of equity securities in which the Fund may invest on a long and short basis include, but are not limited to, common and preferred stocks of all market capitalizations, rights, warrants and other investment companies, including ETFs.  The Fund may also invest in equity securities of foreign issuers (including issuers located in emerging markets), and may invest in foreign securities in the form of depositary receipts.  The Fund may also invest in securities issued in IPOs.

The types of fixed income securities in which the Fund may invest include securities of U.S. and foreign issuers (including issuers located in emerging markets).  “Fixed income securities” include, but are not limited to, corporate bonds, convertible bonds and obligations of the U.S. Government.  The fixed income securities in which the Fund invests may be of varying maturities and may include those that are rated below investment grade (i.e., “junk bonds”).
The filing also stats that the fund may also invest in derivative instruments, specifically futures contracts, options, swap agreements and currency-linked derivatives, such as forward foreign currency contracts, as a substitute for making direct investments in the underlying instruments or to reduce exposure to, or “hedge,” against market volatilities and other risks.  The Fund may use a derivative investment rather than investing directly in an underlying asset class as a low-cost, effective means to gain exposure to the asset class.

The Visium Event Driven Fund was converted from a private fund format with the same investment objective. Messrs. Gallahger and Drippe have managed the private fund since 2001.

Here is the press release:

Company Press Release
Visium Asset Management Launches its First Mutual Fund

August 19, 2013 –New York, NY – Visium Asset Management, LP (“Visium”) announced the launch of the Visium Event Driven Fund (VIDVX), the first mutual fund offering for the alternative asset management firm. Founded in 2005, Visium manages in excess of $4.7 billion in assets as of June 30, 2013 across six private funds.

The Visium Event Driven Fund’s investment objective is to achieve capital growth while maintaining a low correlation to the U.S. equity markets. The Fund is managed with a flexible blend of two complementary strategies (Special Situations and Merger Arbitrage) that are used to target the securities of primarily North American companies that the Fund’s portfolio managers believe will be impacted by pending or anticipated corporate events.

The Special Situations Strategy is managed by Francis X. Gallagher, a 29-year industry veteran who joined Visium in 2011 upon the completion of a strategic transaction with Catalyst Investment Management Co., LLC. This strategy invests in opportunities where particular anticipated events in a company’s life cycle could lead to a significant increase in the security’s value over a specific period of time.

Peter A. Drippé manages the Merger Arbitrage Strategy, which invests in securities where there may be an opportunity to capture the spread between the security price at announcement and the price upon completion of a transaction. Mr. Drippé has 28 years of industry experience and joined Visium with Mr. Gallagher in 2011.

The Visium Event Driven Fund was converted from a private fund format with the same investment objective. Messrs. Gallahger and Drippe have managed the private fund since 2001.

“We are thrilled to offer our Event Driven strategy in a mutual fund format. The Fund allows investors of all sizes the opportunity to take advantage of a strategy that seeks to provide equity-like returns with low volatility comparable to that of a high-quality fixed income portfolio,” said Jacob Gottlieb, MD, CFA, Managing Partner and Chief Investment Officer of Visium Asset Management. “We believe the Fund is an excellent addition to an investor’s core portfolio.”

“Visium continues to grow by strategically adding new products, services and talented investment professionals. Our new mutual fund initiative is a natural extension of our existing product offering,” Gottlieb added, “We look forward to further expanding our mutual fund line-up over time and expanding our distribution footprint by working closely with the financial advisor channel.”

####

About Visium Asset Management, LP

Founded in 2005 by Jacob Gottlieb, MD, CFA, Visium Asset Management, LP is dedicated to generating high-quality, low-correlated returns in a variety of market environments for high-net-worth and institutional clients.

Headquartered in New York City, Visium manages over $4.7 billion as of June 30, 2013 in long/short equity, credit, multi-strategy and event driven strategies. In addition to the Visium Mutual Funds, Visium manages six private funds. The firm has a staff of over 100 professionals.