Investing.com — Walleye Capital plans to return approximately $2 billion to clients as the hedge fund scales back its equities trading operations, according to a Bloomberg report on Friday.
The firm will reportedly reduce its hedge fund assets to about $10 billion, matching the level from the start of the year. Walleye’s separately managed accounts business Dockside will maintain an additional $5 billion in assets, the report added.
The multistrategy hedge fund, which manages about $17 billion in total assets, informed clients Wednesday of the cash return as part of a plan to restructure its internal equities business. Anil Gondi, the firm’s head of equities, was dismissed along with a substantial portion of the equities teams.
Chief Investment Officer Will England stated in a letter to clients that the firm is “going to lean into the businesses where we have a proven and differentiated right to win, including our Volatility, Quant and external businesses.”
England said Walleye is not abandoning equity long/short trading entirely, but acknowledged the firm’s “competitive advantage” does not lie in replicating the traditional multi-manager stocks trading model. The strategy will continue through external manager allocations and support for select internal stock pickers.
Walleye’s assets grew from about $4 billion at the end of 2023. The firm lost 5.9% in October, bringing its year-to-date decline through last month to 6.8%.
Mike Scheer, a former Jain Global portfolio manager, joined the firm to work directly for England.
Original Article
Walleye Capital to return $2 billion to clients after equity cuts – report
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