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Two Sigma co-founder seeks to preserve voting parity in divorce case
Overdeck testified that a settlement larger than his $723.0 million offer could force him to sell part of his Two Sigma stake under less favorable conditions.
Two Sigma co-founder John Overdeck told a New Jersey court that maintaining his equal voting position with co-founder David Siegel is a key concern as he contests a divorce claim tied to his stake in the $80 billion quantitative hedge fund, according to testimony reported by Hedgeweek via Bloomberg.
Overdeck said paying his wife Laura more than the $723.0 million settlement he has offered could require him to sell shares in Two Sigma. He warned that such a sale could disrupt the “balance of control” between the two billionaire founders, who have been in a long-running dispute over management and the firm’s structure.
Overdeck estimated his interest in Two Sigma is worth about $4.9 billion, while Laura Overdeck is seeking 35% of the stake valued at roughly $6.2 billion. He also said his $723.0 million offer reflected an amount he believed he could pay within a reasonable timeframe, and that a larger, court ordered settlement could force selling under less favorable valuation conditions.
The testimony is part of one of New Jersey’s largest divorce proceedings. Overdeck has already spent six days on the witness stand, is expected to resume after a recess in October, and Judge Bruce Buechler is expected to rule several months after the trial concludes, with the case being heard without a jury.