Walleye to Cut Large Equity Long/Short Teams and Return Some Capital

TechFlow news, November 6: According to a letter to investors from Walleye Capital, the hedge fund will streamline its internal equity long/short business, replace the leadership of that business and a substantial portion of the investment team, and plans to return some capital to investors; the specific amount, timing and method will be announced separately.

Walleye posted a 5.9% loss in October, its worst monthly performance since March 2020. The firm said its internal equity long/short business has been the weakest since 2023 and will focus more on volatility, quant and externally managed strategies going forward, while retaining equity investments through external managers and high-conviction internal managers.

The financial research community Special Situations also noted that internal teams at Axebrook, Engineers Gate, Lone Pine, Millennium and Verition, as well as Samlyn, have experienced liquidations, large redemptions or team changes this week. Some of these reports have not been officially confirmed and should not be taken to mean that the related funds have all been liquidated.

Source: TechFlow