Hedge Fund Two Sigma’s billionaire founders head to arbitration, Bloomberg News reports

(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.