Two Sigma names new co-CEOs as feuding co-founders step down

Two Sigma’s co-founders John Overdeck and David Siegel are stepping down as co-chief executives of the hedge fund following a feud that spilled into public view through a regulatory filing and handing control over to two new co-CEOs.

Scott Hoffman and Carter Lyons were appointed co-chief executive officers effective Sept. 30. Overdeck and Siegel will continue to serve as co-chairmen of the firm, according to a Aug. 28 news release announcing the leadership changes.

Siegel and Overdeck founded Two Sigma in 2001. The feud between Overdeck and Siegel shot into public view when the firm disclosed in a Securities and Exchange Commission Form ADV filing in 2023 that their strained relationship was a potential material risk to clients with the two disagreeing on firm organization, succession plans and other matters.

The Aug. 28 news release noted that “David and John will step away from their day-to-day management roles, but continue lending their deep quantitative investment and technology expertise as Co-Chairmen to ensure that the company remains at the forefront of financial sciences.”

Lyons served as Two Sigma’s chief business officer and has been at the firm for 13 years after joining from BlackRock. Hoffman was the former chief administrative officer and general counsel at Lazard until his retirement in 2023.

As part of the leadership changes, Two Sigma announced Ali-Milan Nekmouche, chief investment officer of equities, will now take on the additional role of chief investment officer for Two Sigma Investments, previously held by Overdeck. Geoff Duncombe will continue as chief investment officer for Two Sigma Advisers and chief investment officer of Macro.

The release noted that Hoffman and Lyons will work with Nekmouche, Duncombe and Jeff Wecker, Two Sigma’s chief technology officer, and Tim Reynolds, the firm’s chief operating officer “in driving forward the firm’s investment priorities and future growth.”

Siegel said in the release “Our vision has always been to build a sustainable organization driven by a systematic investment process, a commitment to investing in our people and platform, and an evolution mindset.”

He added that “In light of the ongoing advancements in AI, I am more excited than ever about our ability to use our scientific investment philosophy to generate differentiated returns, and I look forward to continuing to be part of this journey for years to come.”

While Overdeck said, "We are very grateful for the trust our investors have placed in us over our first 23 years and have full confidence in Carter, Scott, and our strong and deep leadership bench as they guide the firm forward.”

Major pension funds have been past investors in Two Signma including the State of Wisconsin Investment Board and the Sacramento County (Calif.) Employees' Retirement System, according to Pensions & Investments research center data.

Two Sigma has approximately $60 billion in assets over management and approximately 2,000 employees globally.