Hedge Fund Walleye to Cut Large Equity Long/Short Team and Return Some Capital

on November 6, according to an investor letter from Walleye Capital, the hedge fund will streamline its internal long/short equity business, replace the leadership and a significant portion of the investment team for this division, and plans to return a portion of capital to investors, with specific amounts, timing, and methods to be announced separately.

Walleye lost 5.9% in October, marking its worst monthly performance since March 2020. The firm stated that its internal long/short equity business has been the weakest since 2023, and it will subsequently focus more on volatility, quantitative, and externally managed strategies, while continuing to maintain equity investments through external managers and high-conviction internal managers.

The financial research community Special Situations also reported that Axebrook, Engineers Gate, Lone Pine, Millennium and Verition internal teams, along with Samlyn, experienced liquidations, large redemptions, or team adjustments this week. Some of these items have not yet been officially confirmed and should not be taken to imply that all relevant funds have been liquidated.