# Walleye Capital to Return $2 Billion Following Equities Trading Reset The hedge fund is downsizing its internal equities business to refocus on core strategies. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-11-06 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0a1c91df-7cbe-4558-906d-a86c96c032ec ## Capital Return Strategy Walleye Capital has announced plans to return approximately $2 billion to its clients. This decision follows a strategic move to scale back its internal equities trading operations. The firm aims to reduce its hedge fund assets to roughly $10 billion, returning to the total asset level it held at the start of 2025. ## Operational Restructuring Details The firm informed clients of this shift on November 5. As part of the internal revamp, Anil Gondi, the head of equities, has departed the company. A substantial portion of the equities team was also let go, signaling a significant reduction in the firm's direct involvement in traditional stock picking and trading activities. ## Maintaining Core Business Units Despite the reduction in equities, Walleye will continue managing $5 billion in assets through its Dockside separately managed accounts business. Chief Investment Officer Will England stated the firm will lean into areas where it has a proven advantage, specifically focusing on volatility, quantitative strategies, and its established external manager allocation business models. ## Competitive Market Landscape Walleye operates within a highly competitive hedge fund environment dominated by industry giants like Millennium Management and Citadel. These large firms have seen massive growth, with ten major multistrategy funds overseeing $2.2 trillion by the end of 2025. This concentration of capital has intensified the ongoing, expensive war for top-tier investment talent. ## Performance and Market Context The firm reported a 5.9% loss in October, contributing to a total decline of 6.8% for the year through the end of last month. These results highlight the challenges smaller or mid-sized firms face when attempting to compete directly against the massive scale and resources of the industry's largest multistrategy hedge fund players. ## Strategic Talent Acquisition While cutting back on its broader equities team, the firm is still making targeted hires. Mike Scheer, a former portfolio manager at Jain Global, is joining the firm to work directly under CIO Will England. Scheer will specialize in high-conviction stock picking, representing the firm's refined approach to internal equity market participation. ## Future Trading Model Walleye is not completely exiting the equity long/short trading space. Instead, it is shifting its model away from replicating traditional multi-manager stock trading. The firm will maintain exposure through its external manager allocations and by supporting a select group of internal stock pickers who demonstrate the highest conviction in their specific market strategies. ## Growth and Market Position Walleye has experienced significant growth, with assets rising from approximately $4 billion at the end of 2023 to $17 billion recently. This restructuring represents a pivot to preserve that growth by focusing on differentiated strengths rather than competing in overcrowded segments where the firm lacks a clear, sustainable competitive advantage over rivals. ## Sources covering this story - https://www.livemint.com/companies/walleye-to-return-2-billion-to-clients-in-stocks-trading-reset-11793990809278.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._