Two Sigma, the Manhattan-based hedge fund renowned for its advanced algorithms, is currently under scrutiny due to a series of internal disputes and regulatory investigations. The $60 billion firm is faced with a strained relationship between co-founders David M. Siegel and John A. Overdeck, a situation that poses a threat to its future.
The co-founders' discord has been further complicated by legal issues involving Overdeck's wife, Laura Overdeck. The founder of the Bedtime Math nonprofit has filed a lawsuit against her husband, alleging that he covertly transferred billions into Wyoming trusts during their ongoing divorce proceedings.
Adding to the firm's troubles, an anonymous employee reportedly tampered with trading models, which resulted in $450 million in "positive impacts" and $170 million in "negative impacts". This incident has drawn the attention of the Securities and Exchange Commission (SEC), leading to an ongoing investigation into the firm's internal controls.
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