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Two Sigma lost a major investor in 2023 amid co-founder dispute
Co-founder John Overdeck said the founders’ fallout raised client concerns about governance, and Two Sigma later replaced the withdrawing client despite the departure.
Two Sigma Investments lost an unnamed major investor in 2023 amid a long-running dispute between billionaire co-founders John Overdeck and David Siegel, Hedgeweek reports, citing testimony Overdeck gave in his New Jersey divorce proceedings.
Overdeck said the breakdown between the founders led some clients to question Two Sigma’s governance and whether the firm would operate as expected, and he warned that public details of the dispute could cause other large investors to reconsider allocations.
According to the report, a person familiar with the matter confirmed the investor withdrew in 2023, but Overdeck said the firm subsequently replaced the client.
Despite the loss, Two Sigma’s assets under management have risen to a record of more than $75bn, and the firm has continued raising money for new investment vehicles, while the dispute has been ongoing for years and was identified as a material business risk in 2023.