Hedge fund Walleye hands back capital as it slims down equity business

Multi-strategy hedge fund Walleye is handing capital back to investors as it reduces the size of its equity business, the Financial Times reported. The fund, which manages about $17bn in assets, told clients the decision comes after it endured its worst month since the coronavirus crisis, the FT said.

The Financial Times' coverage is based on a publisher summary, and the full article was behind a paywall at the time of publication. Available details are therefore limited to the headline framing and the summary of client communications. Specific figures for the amount of capital returned, the size of the equity book after the reduction, and the month in which the losses occurred were not available in the source material and should be confirmed against the original report.

For allocators, the development is a reminder that multi-strategy managers can rapidly resize individual sleeves in response to drawdowns, with capital returned to clients as the firm narrows its focus.