Visium Asset Management, the hedge fund at the center of an insider trading investigation, is shutting down, according to an investor letter seen by Business Insider.
Visium is shutting its flagship balanced fund, and has suspended withdrawals and redemptions requested from investors.
"Any voluntary withdrawal or redemption requests submitted for June 30, 2016...will not be effective," the letter says.
Visium said it anticipates withholding 3-5% of assets in reserve for "possible liabilities and other contingencies."
Visium is also shutting its Institutional Partners Fund, Equity Alpha Fund and Equity Alpha UCITS Fund, and is selling its global fund to AllianceBernstein, the letter said.
"[G]iven the uncertainty relative to the final outcome of the recent regulatory developments, the negative impact of the resulting publicity, and the substantial investor withdrawals, it became clear that maintaining the status quo was increasingly untenable for the firm," Jake Gottlieb wrote in the letter.
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