Walleye Capital, managing $17 billion, has initiated a restructuring process after facing a 5.9% loss in October, which was the firm’s most challenging month since March 2020. The hedge fund has dismissed its head of equity long-short, Anil Gondi, in a move to simplify operations within its internal equity long/short sector. This information was shared in a letter to investors accessed by Business Insider.
According to Will England, the CEO and Chief Investment Officer of Walleye, the firm is evaluating all operational aspects. “We have decided to part ways with our long/short leadership and a significant portion of our internal long/short investment teams,” he explained in the announcement. Neither Walleye nor Gondi have provided additional comments.
Anil Gondi joined Walleye in July 2025 after serving as a stock-picking portfolio manager for Balyasny Asset Management and founding his firm, 6elm Capital. His departure marks the second major personnel change in Walleye’s stock-picking division this year. The firm’s chief operating officer, Matt Giannini, departed in September to rejoin Citadel, as reported by Business Insider.
Will England noted that despite efforts to enhance the internal business with new leadership, the outcomes have not met expectations. “The opportunity cost and resources utilized have outweighed the returns,” England stated in the letter.
Walleye intends to maintain its stock trading activities. England will supervise the internal teams, and the firm will continue investing in externally managed stock-picking funds. Recently, Walleye hired Anna Dev, previously involved in business development at Millennium, to identify external investment opportunities.
Walleye is known for investing in funds established by former Citadel traders, including Tommaso Trento’s Benchstone Capital and Fifthdelta, led by Niall O’Keeffe and Tio Charbaghi. October proved difficult for hedge funds, with heavy losses across stock-picking teams.
Other equity-centric firms like Point72 Asset Management and Schonfeld Strategic Partners also experienced financial losses during the month. The S&P 500 index dropped around 1%, with tech giants such as Meta and Intel witnessing significant sell-offs. Short-selling increased to levels not seen in nearly five years, as reported by Goldman Sachs data.