Quantitative hedge fund Seven Eight Capital, the quantitative hedge fund firm spun out of Schonfeld Strategic Advisors just a year ago, is winding down operations after facing significant investor redemptions, according to a report by Business Insider.

The report cites unnamed sources familiar with the matter as revealing that the firm's decision to close came after two major investors withdrew their funds. According to a regulatory filing, most of the firm's 22 employees are expected to depart.

At its peak, the firm managed approximately $500m in assets and operated as part of Schonfeld Strategic Advisors’ multi-manager platform for over a decade before being spun-out as an independent operation as part of broader reorganisation and cutbacks at Schonfeld.

According to the report, Seven Eight may continue operating in a limited capacity, possibly as a separately managed account for an existing hedge fund.