Hedge Funds
Walleye Capital Cuts Back Equity Stock-Picking Unit After 5.9% October Loss
The $17bn New York multi-strategy manager is parting ways with its internal equity long/short head and will return part of its capital.
HedgeWeekly Hedge Fund Desk ·
Walleye Capital, the New York multi-strategy manager with about $17bn under management, is scaling back its in-house equity long/short business after the firm lost 5.9% in October, its worst month since March 2020, according to Hedgeweek and Reuters.
Anil Gondi, who joined in July 2025 to run the unit and previously worked at Balyasny Asset Management and later founded 6elm Capital, is leaving along with a substantial part of the investment team. Chief executive and chief investment officer Will England told investors in a letter that the stock-picking effort had not delivered the results expected and had absorbed too many resources for the return it produced. Reuters reported that Walleye also plans to return a portion of its capital.
Walleye will keep its allocations to externally managed stock-picking funds and continue to recruit internal portfolio managers, with the remaining internal teams reporting directly to England. It has hired Anna Dev, formerly of Millennium, to source third-party opportunities. The announcement came as a tech-led selloff erased year-to-date gains at many funds: Goldman Sachs estimated that tech-focused equity long/short funds were roughly flat for the year after falling more than 4% on Thursday, and multi-strategy managers dropped 1.4% on the day.
For allocators, the move shows how quickly multi-manager platforms are willing to cut internal teams and leverage when a crowded equity book turns. PivotalPath has noted high and rising overlap among the ten largest multi-strategy funds, so further unwinds could hit the same securities, while Walleye's pivot toward external managers could widen the pool of capital available to outside stock pickers.