Two Sigma co-founder John Overdeck has told a New Jersey court that preserving his equal voting position with fellow founder David Siegel is a key consideration as he fights a divorce claim involving his stake in the $80bn quantitative hedge fund, according to a report by Bloomberg.
Overdeck testified that paying his wife Laura more than the $723m settlement he has offered could force him to sell part of his holding in Two Sigma. Such a sale could disrupt the existing balance of control between the two billionaire founders, who have been locked in a long-running dispute over the management and structure of the firm.
“Maintaining voting parity with Dr Siegel is a principal concern,” Overdeck said during testimony in New Jersey Superior Court.
Overdeck estimates his interest in Two Sigma is worth about $4.9bn. His wife is seeking 35% of the stake, which she values at approximately $6.2bn.
The co-founder said his $723m offer represented an amount he believed he could pay within a reasonable timeframe. A larger court-ordered settlement, particularly if he were not given sufficient time to meet it, could require him to sell shares under less favourable valuation conditions.
The testimony forms part of one of New Jersey’s largest divorce proceedings. Overdeck has already spent six days on the witness stand and is due to continue testifying before the case goes into a recess and resumes in October. Judge Bruce Buechler is hearing the case without a jury and is expected to rule several months after the trial concludes.
