Hedge fund Walleye to cut large number of equity long-short team members and return some capital

Walleye Capital told investors it will restructure its internal equity long/short unit, replacing its leadership and a substantial portion of the investment team while returning some capital, with amounts and timing to be disclosed later. The move follows a 5.9% loss in October, the hedge fund's worst monthly result since March 2020, and management said the internal long/short business has been its weakest performer since 2023. Walleye will shift focus toward volatility, quantitative and externally managed strategies, though it will keep equity exposure through outside managers and high-conviction internal managers. The shake-up comes amid a broader wave of closures, redemptions and team changes reported across Axebrook, Engineers Gate, Lone Pine, Millennium, Verition and Samlyn, some of which remain unconfirmed. Investors will watch the size and mechanics of the capital return and whether other multi-manager and long/short peers follow with similar cuts.