In a stunning, tragic twist, one of the former
Visium Asset Management portfolio managers who last week
was arrested for insider trading and other crimes apparently
committed suicide Monday evening. Sanjay Valvani, 44, was found
dead at his Brooklyn apartment. According to Bloomberg, police found a knife near his body and a
suicide note. He apparently slashed his neck, the report said.
"We mourn the tragic loss of Sanjay, a devoted father, husband
and friend," Visium founder Jacob Gottlieb reportedly said in a
statement. On Friday the New York hedge fund firm, which
focuses on health-care investing, agreed to sell its Visium
Global Fund to New York asset manager AllianceBernstein and
said it would liquidate its flagship fund, the Visium Balanced
Fund, after Valvani and two other former portfolio managers of
Visium as well as a government official were charged for their
roles in securities violations. The four were also separately
charged by the Securities and Exchange Commission.
While much attention is focused on
Pershing Square Capital Management’s two most
high-profile positions—its large long bet on Valeant
Pharmaceuticals International and short bet on
Herbalife—its largest disclosed U.S. long suffered a
big loss on Tuesday. Shares of Canadian Pacific Railway fell
nearly 2 percent after dropping more than 4 percent earlier in
the day. The Calgary-based company warned that second quarter
revenue could decline by 12 percent due to wild fires in
northern Alberta, weak commodity prices and the strengthening
Canadian dollar. The stock is now down about 8 percent in the
past two weeks. The stock became Pershing Square’s
largest long after the New York hedge fund firm headed by
William Ackman reduced its huge stake in Zoetis in May.
Meanwhile shares of Valeant fell about 3.5 percent on Tuesday
to a new six-year low.
Brevan Howard is back in the black thanks to a very strong
June…so far. BH Macro, its public fund that invests
substantially all of its assets in the Brevan Howard Master
Fund, is up about 3.2 percent this month through June 17. As a
result, the fund is up 1.5 percent for the year-to-date.
Hedge fund redemptions are up a bit according to one
measure. The SS&C GlobeOp Forward Redemption Indicator rose
slightly in June to 4.88 percent from 4.38 percent in May.
"This relatively flat comparison is in line with other data we
have seen in the first half of this year, which is indicating
stability in overall hedge-fund allocations," says Bill Stone,
chairman and chief executive officer of SS&C Technologies,
in a statement.