Two Sigma Co-Founders Step Down from Day-to-Day Operations, New CEOs Appointed

John Overdeck and David Siegel, the co-founders and co-chairmen of the hedge fund Two Sigma, will be stepping down from the firm’s day-to-day operations, handing over leadership to two new Co-Chief Executive Officers.

As of 30 September, Carter Lyons, Two Sigma’s Chief Business Officer, and Scott Hoffman, who previously served as Chief Administrative Officer and General Counsel at Lazard, will take the reins at the $60 billion firm. While Overdeck, a computer scientist, and Siegel, a mathematician, will remain actively involved as advisors, specifically focusing on quantitative investing and technology, they will no longer be managing the business directly.

Despite their reduced roles, the pair will retain their positions as Co-Chairmen, and their equity stakes in the firm will remain intact. Their ongoing involvement will be primarily advisory, ensuring continuity in the firm’s commitment to quantitative research and technological innovation.

The relationship between Overdeck and Siegel had become increasingly strained in recent years. A regulatory filing in March 2023 revealed that the tension between the two had grown to the point where it was considered a material risk to the firm. This rift highlights the challenges faced by the company’s leadership, though both founders have now agreed to step back from the day-to-day management.

Two Sigma, which employs around 2,000 people globally, has a particularly strong research and development division, with two-thirds of its staff dedicated to these areas. The firm’s reputation for cutting-edge research and technological expertise remains central to its operations and growth.

In a press statement, Siegel expressed his enthusiasm about the firm’s future: “With AI advancing rapidly, I am more optimistic than ever about our ability to apply our scientific investment approach to deliver distinctive returns. I am excited to continue contributing to the firm’s success in the years ahead.”

Overdeck also shared his confidence in the firm's direction: “Two Sigma continues to lead in pioneering research, harnessing advanced technologies and techniques, and attracting the brightest minds in mathematics, science, and computer science. Our success is thanks to the extraordinary talent of the people who work here, and we are grateful for the trust our investors have shown us over the last 23 years. I have full confidence in Carter, Scott, and the wider leadership team as they guide Two Sigma into the future.”

Carter Lyons, with a career spanning 25 years in investment management, has played a pivotal role in the firm's expansion and diversification since joining in 2011. Previously, he worked at BlackRock as Managing Director in the Global Client Group’s US and Canadian Institutional team.

Scott Hoffman, who retired from Lazard in September 2023 after nearly three decades, has a distinguished career in financial services, having served as the firm’s Chief Administrative Officer and General Counsel. His extensive background in investment banking and asset management will be invaluable as he takes on his new role at Two Sigma.