Key Takeaways
- • Xantium, the quantitative hedge fund 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 the Financial Times.
- • If completed, the spinout would be the largest hedge fund launch on record, surpassing Systematica Investments' $8.4bn separation from BlueCrest Capital Management in 2015.
- • Most of the $9bn comes from external investors, with the balance provided by Tudor, senior management and employees; it remains unclear whether Tudor will retain an equity stake.
- • The firm employs around 300 people and trades equities, commodities, fixed income and FX through a single multi-asset fund across London, New York, Salt Lake City and Abu Dhabi.
- • The move comes amid rising operational costs and intense competition for talent from multistrategy platforms such as Citadel and Millennium.
Summary
Quantitative hedge fund Xantium is preparing to separate from Tudor Investment Corporation, the firm founded by Paul Tudor Jones, in the first half of 2027. According to a report by the Financial Times, the spinout would carry approximately $9bn in investor assets, which would make it the largest hedge fund spinout on record.
Xantium was founded within Tudor in 2019 by former DE Shaw quantitative specialists Oliver Watson and Sergey Levin. The firm combines systematic trading models with discretionary investment decisions, although computer-driven strategies account for the majority of portfolio risk. It trades across equities, commodities, fixed income and foreign exchange through a single multi-asset fund, with operations spanning London, New York, Salt Lake City and Abu Dhabi. The firm employs around 300 people.
The planned launch would exceed the previous record set by Leda Braga's Systematica Investments, which separated from BlueCrest Capital Management in 2015 with $8.4bn in assets. It would also surpass the $5bn launch of Diego Megia's Taula Capital following his departure from Millennium Management in 2024. Most of Xantium's assets come from external investors, while the remainder is provided by Tudor, senior management and employees. The report indicates it is unclear whether Tudor will retain an equity stake after the launch.
The move comes as independent hedge fund launches face increasingly challenging conditions, including rising operational costs and intense competition for investment talent from multistrategy platforms such as Citadel and Millennium. Xantium's established investor base and existing infrastructure could provide a significant advantage as it transitions to independence.
Xantium was founded within Tudor in 2019 by former DE Shaw quantitative specialists Oliver Watson and Sergey Levin. The firm combines systematic trading models with discretionary investment decisions, although computer-driven strategies account for the majority of portfolio risk. It trades across equities, commodities, fixed income and foreign exchange through a single multi-asset fund, with operations spanning London, New York, Salt Lake City and Abu Dhabi. The firm employs around 300 people.
The planned launch would exceed the previous record set by Leda Braga's Systematica Investments, which separated from BlueCrest Capital Management in 2015 with $8.4bn in assets. It would also surpass the $5bn launch of Diego Megia's Taula Capital following his departure from Millennium Management in 2024. Most of Xantium's assets come from external investors, while the remainder is provided by Tudor, senior management and employees. The report indicates it is unclear whether Tudor will retain an equity stake after the launch.
The move comes as independent hedge fund launches face increasingly challenging conditions, including rising operational costs and intense competition for investment talent from multistrategy platforms such as Citadel and Millennium. Xantium's established investor base and existing infrastructure could provide a significant advantage as it transitions to independence.
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