Two Sigma Investments is winding down its $120m Eclipse fund as part of an effort to simplify its fund structure, with the closure is scheduled for 31 December, 2025, with all investor interests being compulsorily redeemed, according to a report by Bloomberg.
The report cites a note to investors seen by Bloomberg as confirming the closure.
Eclipse, a legacy vehicle launched in the early 2000s that traded macro and equities strategies, represents only a small fraction of Two Sigma’s $70bn-plus in assets under management. The fund has been gradually returning client capital over the years and has not replaced redemptions.
Investors in Eclipse can choose to reinvest redeemed capital into Two Sigma’s Spectrum funds, while the underlying strategy will continue across other vehicles at the firm.
The move comes as Two Sigma continues to navigate internal changes following a multiyear feud between founders John Overdeck and David Siegel, who stepped back from day-to-day management last year. Overdeck has since returned to the management committee. The firm also recently appointed new co-CEOs and reduced its workforce by roughly 10%.
Two Sigma has faced additional challenges with a former quantitative researcher charged with allegedly manipulating models to inflate performance figures.
