HedgeCo.Net — Xantium, the quantitative hedge fund that has operated inside Paul Tudor Jones’ Tudor Investment Corporation since 2019, plans to leave the firm and launch independently in the first half of 2027 with about $9 billion of assets, the Financial Times reported, citing people familiar with the plans. Xantium and Tudor declined to comment to the newspaper.
Most of that capital comes from outside investors, with the rest provided by Tudor, Xantium’s leadership and some employees. Tudor is expected to back the launch, although it is not clear whether it will keep an equity stake. The firm employs about 300 people and has offices in London, New York, Salt Lake City and Abu Dhabi.
Xantium was founded by Oliver Watson and Sergey Levin, both formerly senior quants at D.E. Shaw. It runs a single multi-asset fund trading equities, commodities, bonds and currencies, blending systematic models with discretionary decisions, though computer-driven strategies account for most of the portfolio’s risk.
If it proceeds as planned, the move would exceed the $8.4 billion Leda Braga’s Systematica Investments took when it separated from BlueCrest Capital Management in 2015, and the roughly $5 billion that Taula Capital launched with in 2024, making it the largest hedge fund spinout on record according to data cited by the FT.
The timing stands out. Independent launches have become harder as legal and operational costs rise and multi-manager platforms such as Citadel and Millennium bid aggressively for top portfolio managers. A spinout that arrives with an existing investor base, track record and infrastructure sidesteps much of that friction, and Tudor has a long history of seeding managers, most notably Two Sigma.