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Two Sigma co-founders face new arbitration proceedings
The firm disclosed two separate arbitrations to investors, including a governance dispute over whether Seth Platt serves as co-CEO alongside Carter Lyons after Scott Hoffman’s departure.
Two Sigma co-founders David Siegel and John Overdeck are facing fresh arbitration proceedings as a long-running dispute over the $80bn quantitative hedge fund’s governance and management escalates, according to an investor letter discussed by Hedgeweek, citing Bloomberg.
In one arbitration, entities linked to Siegel’s family were referred to arbitration on 17 August and allege that Overdeck had undisclosed professional and financial conflicts tied to an earlier dispute involving a former Two Sigma employee who sought severance and deferred compensation roughly two years after leaving. The claim also alleges fiduciary breaches, and the letter says neither Overdeck nor co-CEO Carter Lyons had yet responded to the allegations.
A second arbitration, filed with a demand on 18 August, centers on the composition of Two Sigma’s management committee. The dispute follows the resignation last year of Scott Hoffman, who cited continuing governance difficulties, and Siegel’s appointment of Seth Platt to replace him.
The parties disagree over whether Platt’s appointment automatically makes him co-CEO alongside Lyons, and the investor letter frames the latest disputes as another chapter in deteriorating relations between Siegel and Overdeck, who founded Two Sigma in 2001.