Walleye Capital has eliminated its credit and commodities teams as the multi-strategy hedge fund sharpens its focus on core areas including volatility, quantitative strategies, and fundamental long-short equity, according to a report by Bloomberg.
The report cites an unnamed sources familiar with the matter as revealing that the firm recently let go of Ed Lee and his six-person long-short credit team, as well as commodities traders Thomas Capoccia and Allen Chan. The decision marks a strategic pivot away from strategies that collectively accounted for less than 1% of the firm’s total risk exposure. Walleye declined to comment on the personnel changes.
The move follows a broader recalibration at the New York-based manager, which has seen both cuts and key hires over the past year. While overall headcount dipped slightly from 350 to 340, assets under management have surged – from $5.8bn to $9bn – reflecting strong performance and inflows.
The flagship Walleye Opportunities Fund returned 1.9% in April, bringing its year-to-date performance to 4.9%, as the firm capitalised on renewed volatility sparked by geopolitical developments and US trade tensions.
Led by Chief Investment Officer Will England, Walleye has previously trimmed exposure to macro-related strategies, including winding down its discretionary macro group, removing the head of its global macro division, and reducing fixed income and commodities trading staff.
At the same time, the firm is bolstering its core capabilities. In a notable hire, Walleye is bringing on Anil Gondi, a seasoned portfolio manager from Balyasny Asset Management, to lead its long-short equity division in the coming months.
