Paloma Partners, a multistrategy hedge fund established decades ago by Donald Sussman, is undertaking further staff reductions, including strategy and marketing executives. These cuts are part of a broader revamp for the firm. The overhaul involved a leadership change, technology and operations rebuilding, and outsourcing processes aimed at streamlining the company. This restructuring project was completed in the first quarter of this year.
The staff reductions follow a period where Paloma's assets have declined due to redemption requests. A company spokesperson stated that these measures are a "natural next step toward a leaner, more efficient platform for our investors" after doubling its manager roster and overhauling its investment infrastructure over the past year. As of a March filing, the firm manages approximately $1.1 billion. The spokesperson declined to comment on individual personnel or performance.
Paloma has been undergoing a significant transformation, aiming to reestablish its reputation in the industry. Former Goldman Sachs partner and Credit Suisse executive Ravi Singh now serves as CEO, and Mike DeAddio, a longtime WorldQuant executive, is the COO. The firm, which was reported to manage $1.5 billion previously, has been looking to fundraise and diversify beyond its systematic trading roots. Some internal sources suggest Paloma could manage up to $4 billion without requiring additional investment personnel. The firm is reportedly "agnostic" about whether portfolio managers operate internally or externally within their own firms.
