Two Sigma Investments recorded mixed returns across its family of hedge funds last year, with the firm’s macro Compass Enhanced fund falling 16% while its Absolute Return fund, which trades across several strategies, gained 12%, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as confirming that the firm’s main Compass fund also ended the year in negative territory having recorded a 6% decline, while its equity quant fund, Spectrum, gained 8.6%.
The mixed performance adds to a backdrop of wider troubles at Two Sigma, which manages about $60bn, with a regulatory filing disclosing that a feud between its two Founders posed a material risk to to clients. Two Sigma also suspended a Researcher after the employee was accused of tampering with the firm’s trading models.
