John Overdeck and David Siegel, the billionaire Co-Founders of Two Sigma Investments, are set to enter arbitration following a long-running dispute over the future direction of the quantitative hedge fund, according to a report by Reuters.
In a letter to investors on Wednesday, Two Sigma confirmed the arbitration proceedings along with the departure of two executives.
Sources familiar with the situation reportedly said that the firm clarified it is not directly involved in the dispute and does not plan to provide frequent updates to clients about the matter.
The hedge fund, which manages $60bn in assets, has been grappling with a leadership divide that raises concerns about governance and presents a significant risk to the firm.
Both Overdeck and Siegel stepped down from their roles as co-CEOs in 2023, after the company revealed the ongoing leadership issues could threaten its stability.
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