Two Sigma, the $70bn quant hedge fund, has found its internal power struggle exposed in a recent Form ADV filing. Co‑founders David Siegel and John Overdeck, once hailed as rivals to Renaissance Technologies, are locked in a governance battle that has already derailed a tentative 2024 truce. The filing, posted on the SEC’s EDGAR system, details the ongoing feud.

Pages 43‑44 of the accompanying brochure note that Overdeck is challenging the co‑CEO title of Platt, while Platt has attempted to dismiss Carter Lyons, his supposed counterpart. Despite “a variety of management and governance challenges,” Two Sigma’s performance remained solid, even launching a new fund that amassed over $1bn in its first week. Yet the firm has already lost several senior technologists.

Investors now weigh the risk that the founders’ dispute could accelerate talent outflows to competitors such as Jane Street and Hudson River Trading. While the firm’s massive data repository and sophisticated signal library keep current strategies viable, any further erosion of leadership cohesion could impair future alpha generation. The immediate takeaway: governance turmoil has already cost Two Sigma personnel and may pressure its next performance cycle.