Walleye to Return $2 Billion to Clients in Stocks Trading Reset

(Bloomberg) -- Walleye Capital plans to return about $2 billion to clients following its decision to cut back on equities trading.

The firm plans to shrink its hedge fund assets to about $10 billion, roughly the same level it started the year with, according to a person with knowledge of the matter. Walleye’s separately managed accounts business Dockside will continue to run an additional $5 billion in assets, the person said, asking not to be identified because the details are private.

A representative for Walleye declined to comment.

The multistrategy hedge fund, which has about $17 billion in total assets, told clients on Nov. 5 it was returning a portion of its cash in a bid to revamp its internal equities business. Anil Gondi, the firm’s head of equities, was let let go along with a “substantial” portion of the equities teams as part of the decision, Bloomberg reported.

Walleye finds itself competing in a hedge fund world dominated by industry giants from Millennium Management to Citadel that have attracted unprecedented investor interest and used that firepower to wage an expensive war for talent. Ten large multistrats tracked by research firm PivotalPath oversaw a total of $2.2 trillion in assets, including borrowed money, at the end of 2025, more than triple the amount in 2018.

With most of the largest firms now closed to new cash, challengers such as Walleye have grown too. The firm’s assets have grown from about $4 billion at the end of 2023.

The firm is “going to lean into the businesses where we have a proven and differentiated right to win, including our Volatility, Quant and external businesses,” Walleye’s Chief Investment Officer Will England wrote in a letter to clients seen by Bloomberg.

He said while Walleye is not exiting equity long/short trading, its “competitive advantage” is not in trying to replicate the traditional multi-manager stocks trading model. The firm will continue the strategy through its external manager allocations as well as backing some of its “highest conviction” internal stock pickers.

Mike Scheer, a former Jain Global portfolio manager specializing in stock picking that the firm has hired, is joining to work directly for England, the person added.

Walleye lost 5.9% in October, bringing the total decline for this year through last month to 6.8%.

More stories like this are available on bloomberg.com

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