Key Takeaways
- • Xantium, the quantitative hedge fund that has operated inside Tudor Investment Corporation since 2019, plans to spin out and launch independently in the first half of 2027 with about $9 billion in assets, according to the Financial Times citing people familiar with the plans.
- • If completed, the spinout would be the largest hedge fund spinout on record, exceeding Systematica Investments' $8.4 billion separation from BlueCrest Capital Management in 2015 and Taula Capital's roughly $5 billion launch in 2024, per data cited by the FT.
- • Most of the capital is expected to come from outside investors, with the remainder supplied by Tudor, Xantium's leadership and some employees; Tudor is expected to back the launch, but it is unclear whether it will retain an equity stake.
- • Xantium, founded by former D.E. Shaw senior quants Oliver Watson and Sergey Levin, employs about 300 people across London, New York, Salt Lake City and Abu Dhabi and runs a single multi-asset fund.
Summary
Xantium, the quantitative hedge fund that has operated inside Paul Tudor Jones' Tudor Investment Corporation since 2019, plans to leave the firm and launch independently in the first half of 2027 with about $9 billion of assets, the Financial Times reported, citing people familiar with the plans. Xantium and Tudor declined to comment to the newspaper.
Most of that capital is expected to come from outside investors, with the rest provided by Tudor, Xantium's leadership and some employees. Tudor is expected to back the launch, although it is not clear whether it will keep an equity stake. The firm employs about 300 people and has offices in London, New York, Salt Lake City and Abu Dhabi.
Xantium was founded by Oliver Watson and Sergey Levin, both formerly senior quants at D.E. Shaw. The firm runs a single multi-asset fund trading equities, commodities, bonds and currencies, blending systematic models with discretionary decisions, though computer-driven strategies account for most of the portfolio's risk.
If the spinout proceeds as planned, it would exceed the $8.4 billion that Leda Braga's Systematica Investments took when it separated from BlueCrest Capital Management in 2015, and the roughly $5 billion with which Taula Capital launched in 2024, making it the largest hedge fund spinout on record according to data cited by the FT.
The timing stands out to industry observers. Independent launches have become harder as legal and operational costs rise and multi-manager platforms such as Citadel and Millennium bid aggressively for top portfolio managers. A spinout that arrives with an existing investor base, track record and infrastructure sidesteps much of that friction. Tudor has a long history of seeding managers, most notably Two Sigma.
Most of that capital is expected to come from outside investors, with the rest provided by Tudor, Xantium's leadership and some employees. Tudor is expected to back the launch, although it is not clear whether it will keep an equity stake. The firm employs about 300 people and has offices in London, New York, Salt Lake City and Abu Dhabi.
Xantium was founded by Oliver Watson and Sergey Levin, both formerly senior quants at D.E. Shaw. The firm runs a single multi-asset fund trading equities, commodities, bonds and currencies, blending systematic models with discretionary decisions, though computer-driven strategies account for most of the portfolio's risk.
If the spinout proceeds as planned, it would exceed the $8.4 billion that Leda Braga's Systematica Investments took when it separated from BlueCrest Capital Management in 2015, and the roughly $5 billion with which Taula Capital launched in 2024, making it the largest hedge fund spinout on record according to data cited by the FT.
The timing stands out to industry observers. Independent launches have become harder as legal and operational costs rise and multi-manager platforms such as Citadel and Millennium bid aggressively for top portfolio managers. A spinout that arrives with an existing investor base, track record and infrastructure sidesteps much of that friction. Tudor has a long history of seeding managers, most notably Two Sigma.
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