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HedgeCo.Net \u2014 Two Sigma Investments has stopped fundraising and new investments at its real estate unit and is cutting senior staff there after the business raised less than half of its roughly $2 billion target, Bloomberg News reported, citing people familiar with the matter. Separately, Bloomberg reported that Seth Platt, co-founder David Siegel’s representative on the $85 billion quant firm’s two-person management committee, plans to leave once a replacement is found.<\/p>\n
Rich Gomel, the real estate unit’s partner and chief investment officer, is departing along with two of the division’s three remaining partners and one of its two heads of data science, according to the reports. A reduced team will remain to manage the existing portfolio. Two Sigma began investing in real estate in 2019 with internal capital and opened its Real Estate Opportunity Fund to outside investors in 2024, focusing on housing and industrial assets. The Teacher Retirement System of Texas committed about $75 million to the main fund and another $60 million through a co-investment strategy. Two Sigma declined to comment.<\/p>\n
The retreat reflects a hard market for new real estate vehicles. Private real estate fundraising totaled just over $30 billion in the third quarter, the lowest quarterly figure since 2013, according to PEI Group data cited in the reports. A quant manager applying predictive models to property markets was a differentiated pitch, but first-time real estate funds from managers outside the asset class have faced the same allocator reluctance as everyone else, and Two Sigma’s experience suggests a strong brand in liquid markets does not transfer automatically to private real estate.<\/p>\n
The governance story is the more important one for Two Sigma’s hedge fund investors. Platt’s exit will force Siegel to pick his third proxy on the management committee in about two years, as the dispute between Siegel and co-founder John Overdeck continues. Siegel’s earlier representative, former Lazard general counsel Scott Hoffman, resigned in March 2026, and Platt’s departure follows months of disagreement over whether he should also serve as co-chief executive alongside Carter Lyons, Overdeck’s appointee, Hedgeweek reported. Platt will remain chief investment officer and chief operating officer of Siegel’s family office.<\/p>\n
Performance has so far held up through the turmoil: Two Sigma’s Absolute Return Enhanced fund gained 16% through September, according to Bloomberg, and the firm has said 2026 is on track to be one of its strongest years. Investors will watch who Siegel names to the committee and whether the founders’ dispute affects the firm’s other businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"
HedgeCo.Net \u2014 Two Sigma Investments has stopped fundraising and new investments at its real estate unit and is cutting senior staff there after the business raised less than half o\u2026 Continue reading