Hedge Fund Two Sigma Is Hit by Trading Scandal

A researcher at Two Sigma Investments adjusted the hedge fund’s investing fashions with out authorization, the agency has instructed purchasers, resulting in losses in some funds, large positive factors in others and recent regulatory scrutiny.

The researcher, Jian Wu, a senior vice chairman at New York-based Two Sigma, was making an attempt to spice up his compensation, Two Sigma has instructed purchasers, with out figuring out Wu. He made adjustments over the previous yr that resulted in a complete of $620 million in surprising positive factors and losses, in accordance with folks near the matter and investor letters. Two Sigma has positioned Wu on administrative depart.