Donald Sussman, the veteran behind Paloma Partners, is pivoting his long‑standing multistrategy hedge fund to focus on fewer managers in which he has the highest conviction as the firm adjusts to a decline in assets over the past three years.

The move signals a strategic shift, trimming team size and tightening the mandate on manager selection. Sussman says the pullback will enable tighter risk oversight and more concentrated capital deployment.

By concentrating on a narrower set of managers, Paloma aims to preserve alpha generation while navigating a challenging market environment and the recent asset outflow.

The decision underscores the broader trend of hedge funds tightening sails amid volatility, highlighting how conviction and discipline can counterbalance asset headwinds.