Two Sigma Investments LP is a New York City-based international hedge fund that uses a variety of technological methods, including artificial intelligence, machine learning, and distributed computing, for its trading strategies. The firm is run by John Overdeck and David Siegel.
Two Sigma Investments was founded in 2001 by John Overdeck, David Siegel and Mark Pickard. Siegel is a computer science Ph.D. from the Massachusetts Institute of Technology and held the position of Chief Information Officer for D. E. Shaw & Co. prior to starting Two Sigma. Overdeck is an International Mathematical Olympiad Silver Medalist who subsequently studied mathematics at Stanford University and then rose to the position of Managing Director at D. E. Shaw prior to leaving to co-found Two Sigma. Pickard served as the President of the firm from its inception until his retirement in 2006.
According to Two Sigma, the firm’s name was chosen to reflect the duality of the word sigma. A lower case sigma, σ, designates the volatility of an investment’s return over a given benchmark, and an upper case sigma, Σ, denotes sum. By adding together the volatilities of individual positions measured against the benchmark, Two Sigma can amplify forecast signals, the company’s website says.
In 2016, Two Sigma Investments ranked 11th on Penta’s Top 100 Hedge Funds.
The fund managed around $8 billion in November 2011, $23 billion in October 2014, and $32 billion by the end of 2015. As of October 2017, the fund had assets reaching more than $50 billion. In May 2019, the fund had assets reaching $60 billion.
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