Key Takeaways
- • Quantitative hedge fund Xantium is preparing to spin out of Tudor Investment Corporation in the first half of 2027 with approximately $9bn in investor assets, according to the Financial Times, which would make it the largest hedge fund spinout on record.
- • Most of Xantium's $9bn in assets comes from external investors; the remainder is provided by Tudor, senior management and employees.
- • The planned launch would surpass Systematica Investments' 2015 separation from BlueCrest Capital Management ($8.4bn) and Taula Capital's $5bn launch following Diego Megia's 2024 departure from Millennium Management.
- • Xantium, which employs around 300 people, was founded within Tudor in 2019 by former DE Shaw quantitative specialists Oliver Watson and Sergey Levin.
- • It remains unclear whether Tudor will retain an equity stake after the spinout, though the firm is expected to launch with Tudor's backing.
Summary
Xantium, the quantitative hedge fund founded within Paul Tudor Jones' Tudor Investment Corporation, is preparing to spin out in the first half of 2027 with approximately $9bn in investor assets, according to a report by the Financial Times. If completed, the separation would be the largest hedge fund spinout on record, surpassing the $8.4bn that Leda Braga's Systematica Investments took with it when it separated from BlueCrest Capital Management in 2015.
The firm is expected to launch independently with backing from Tudor, although it remains unclear whether the parent company will retain an equity stake. Most of Xantium's existing assets come from external investors, with the remainder provided by Tudor, senior management and employees. The firm employs around 300 people.
Xantium was founded in 2019 by former DE Shaw quantitative specialists Oliver Watson and Sergey Levin. It combines systematic trading models with discretionary investment decisions, though computer-driven strategies account for the majority of portfolio risk. The firm trades equities, commodities, fixed income and foreign exchange through a single multi-asset fund, with operations in London, New York, Salt Lake City and Abu Dhabi. The planned launch would also exceed the $5bn launch of Taula Capital, founded by Diego Megia after his 2024 departure from Millennium Management.
The move comes as independent hedge fund launches face increasingly difficult conditions, including rising operational costs and intense competition for investment talent from multistrategy platforms such as Citadel and Millennium. The report suggests Xantium's established investor base and existing infrastructure could provide a significant advantage during the transition to independence.
The firm is expected to launch independently with backing from Tudor, although it remains unclear whether the parent company will retain an equity stake. Most of Xantium's existing assets come from external investors, with the remainder provided by Tudor, senior management and employees. The firm employs around 300 people.
Xantium was founded in 2019 by former DE Shaw quantitative specialists Oliver Watson and Sergey Levin. It combines systematic trading models with discretionary investment decisions, though computer-driven strategies account for the majority of portfolio risk. The firm trades equities, commodities, fixed income and foreign exchange through a single multi-asset fund, with operations in London, New York, Salt Lake City and Abu Dhabi. The planned launch would also exceed the $5bn launch of Taula Capital, founded by Diego Megia after his 2024 departure from Millennium Management.
The move comes as independent hedge fund launches face increasingly difficult conditions, including rising operational costs and intense competition for investment talent from multistrategy platforms such as Citadel and Millennium. The report suggests Xantium's established investor base and existing infrastructure could provide a significant advantage during the transition to independence.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.