(Reuters) – Two Sigma Investments’ billionaire founders, John Overdeck and David Siegel, are heading to arbitration after a longstanding feud over the direction of the quant hedge fund, Bloomberg News reported on Thursday.
Two Sigma disclosed the arbitration and a pair of executive departures in a letter to investors on Wednesday, the report said, citing people familiar with the matter.
The firm said in the letter it is not a party to the dispute and does not intend to share regular updates about it with clients, the report added.
The hedge fund, with $60 billion in assets under management, has been facing a rift between its top managers that poses governance challenges and a material risk for the firm.
Last year, Overdeck and Siegel both stepped down as co-chief executive officers of the U.S.-based hedge fund after the firm disclosed in 2023 that a rift between its top managers poses governance challenges and material risk for the firm.
Two Sigma did not immediately respond to Reuters’ request for comment.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Daniel Wallis)
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