Key Takeaways
- • Walleye Capital, a $17bn hedge fund manager, is restructuring its internal equity long/short business after a 5.9% loss in October 2026, its worst monthly performance since March 2020, according to a letter from CEO and CIO Will England seen by Business Insider.
- • The division's head, Anil Gondi, who joined Walleye in July 2025, is departing, alongside a substantial share of the equity investment team.
- • England said the internal stock-picking effort "did not produce the results we expected," with opportunity cost and resources consumed "too high relative to the return."
- • Walleye is not exiting equity investing: internal teams will report directly to England, external stock-picking fund allocations will be maintained, and internal PM recruiting continues.
- • The move follows the September departure of COO Matt Giannini to Citadel, marking the second senior exit from the equity business this year.
Summary
Walleye Capital is restructuring its internal equity long/short business following a 5.9% loss in October, with the $17bn hedge fund manager parting ways with division head Anil Gondi and a substantial proportion of its investment team. In a letter to investors seen by Business Insider, chief executive and chief investment officer Will England said the firm is reviewing "every aspect" of its business after its worst monthly performance since March 2020.
The changes include Gondi's departure and a significant reduction in the internal equity long/short team. Gondi joined Walleye in July 2025 after working as a portfolio manager at Balyasny Asset Management and founding 6elm Capital. England referred to the firm's earlier investment in developing internal stock-picking capabilities, writing that "those efforts did not produce the results we expected, and the opportunity cost and resources consumed have been too high relative to the return." The move is the second senior departure from the equity business this year, following the September exit of chief operating officer Matt Giannini, who returned to Citadel.
Walleye is not withdrawing from equity investing. Internal investment teams will report directly to England, the firm will keep its allocations to externally managed stock-picking funds, and it will continue recruiting internal portfolio managers. The manager has also bolstered its external sourcing capabilities by hiring Anna Dev, formerly of Millennium, in a business development role focused on identifying third-party investment opportunities. Walleye is among a number of multi-strategy platforms allocating capital to external managers, including funds founded by former Citadel investors such as Tommaso Trento's Benchstone Capital and Fifthdelta, founded by Niall O'Keeffe and Tio Charbaghi.
The restructuring comes amid a difficult period for equity-focused hedge funds. October saw losses at several prominent multi-strategy managers, including Point72 Asset Management and Schonfeld Strategic Partners. Equity markets were volatile during the month, with the S&P 500 falling approximately 1%, and sell-offs in major technology stocks, including Meta and Intel, heightened uncertainty. According to Goldman Sachs data, short-selling activity increased to approach five-year highs.
Walleye declined to comment, and Gondi did not immediately respond to a request for comment.
The changes include Gondi's departure and a significant reduction in the internal equity long/short team. Gondi joined Walleye in July 2025 after working as a portfolio manager at Balyasny Asset Management and founding 6elm Capital. England referred to the firm's earlier investment in developing internal stock-picking capabilities, writing that "those efforts did not produce the results we expected, and the opportunity cost and resources consumed have been too high relative to the return." The move is the second senior departure from the equity business this year, following the September exit of chief operating officer Matt Giannini, who returned to Citadel.
Walleye is not withdrawing from equity investing. Internal investment teams will report directly to England, the firm will keep its allocations to externally managed stock-picking funds, and it will continue recruiting internal portfolio managers. The manager has also bolstered its external sourcing capabilities by hiring Anna Dev, formerly of Millennium, in a business development role focused on identifying third-party investment opportunities. Walleye is among a number of multi-strategy platforms allocating capital to external managers, including funds founded by former Citadel investors such as Tommaso Trento's Benchstone Capital and Fifthdelta, founded by Niall O'Keeffe and Tio Charbaghi.
The restructuring comes amid a difficult period for equity-focused hedge funds. October saw losses at several prominent multi-strategy managers, including Point72 Asset Management and Schonfeld Strategic Partners. Equity markets were volatile during the month, with the S&P 500 falling approximately 1%, and sell-offs in major technology stocks, including Meta and Intel, heightened uncertainty. According to Goldman Sachs data, short-selling activity increased to approach five-year highs.
Walleye declined to comment, and Gondi did not immediately respond to a request for comment.
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