Quant Hedge Fund Seven Eight Capital Closes After 500 Million Asset Drain

Seven Eight Capital, a quant hedge fund that once boasted $500 million in assets under management, is shutting its doors after a tumultuous 12 months. The firm’s decision to wind down comes on the heels of significant capital redemptions from two major investors, which have left it with dwindling resources.

Founded by co-founders Adrian Sisser and Stephen Cash, Seven Eight Capital had established itself as a reputable player in the hedge fund world, trading on the platform of Schonfeld Strategic Advisors for over a decade. However, following a reorganization at Schonfeld last year, the two firms went their separate ways, marking the beginning of an uncertain journey for Seven Eight.

As the industry continues to evolve, with investors increasingly seeking stable and predictable returns, the decision to shut down may have been a pragmatic one for the fund’s management. The regulatory filing that revealed Seven Eight had 22 employees at its peak this year suggests that the firm was once a sizable operation, but it seems that those numbers have taken a hit.

The news has sent shockwaves through the hedge fund community, with many left wondering what went wrong for Seven Eight Capital. Industry experts point to the growing trend of large investors pulling capital from funds as a contributing factor to the quant hedge fund’s decline. With assets under management dwindling and resources drying up, it’s clear that Seven Eight has been left with no choice but to fold its tent.

While some speculate that the firm may yet rebrand itself in some capacity, operating as a separately managed account for an existing hedge fund, others believe that this is merely a euphemism for a desperate attempt to stay afloat. Regardless of the future prospects, Seven Eight Capital’s demise serves as a cautionary tale for the ever-changing landscape of the hedge fund world.

In a statement, Sisser declined to comment on the matter, leaving many questions unanswered. As the full extent of the shutdown becomes clearer, it remains to be seen how this will impact the broader industry, with investors and regulators closely watching developments in the coming weeks and months.