Walleye Capital
{{Short description|New York Hedge Fund}}
{{Use mdy dates|date=September 2024}}
{{Infobox company
| name = Walleye Capital LLC
| logo = Walleye Capital.svg
| image =
| image_caption =
| image_size =
| type = Private
| traded_as =
| industry = Investment management
| foundation = {{Start date and age|2005}}
| founders = {{Unbulleted list
|Irvin Kessler
|Pete Goddard
}}
| location = New York City, U.S.
| key_people = Will England (CEO & CIO)
| aum = {{US$|7.7 billion}} (January 2025)
| num_employees = 350 (January 2025)
| homepage = {{URL|walleyecapital.com}}
| footnotes = {{cite web |title=Form ADV |url=https://reports.adviserinfo.sec.gov/reports/ADV/161413/PDF/161413.pdf |website=SEC |access-date=September 10, 2024 |archive-date=January 10, 2024 |archive-url=https://web.archive.org/web/20240110113907/https://reports.adviserinfo.sec.gov/reports/ADV/161413/PDF/161413.pdf |url-status=live }}{{cite web |title=Walleye Trading LLC |url=https://files.brokercheck.finra.org/firm/firm_136196.pdf |website=FINRA |access-date=September 10, 2024 |archive-date=September 10, 2024 |archive-url=https://web.archive.org/web/20240910130518/https://files.brokercheck.finra.org/firm/firm_136196.pdf |url-status=live }}
}}
Walleye Capital (Walleye) is an American multi-strategy hedge fund management firm headquartered in New York with additional offices outside the US in London and Dubai.
Background
In 2005, Walleye was originally set up as an options market making firm in Minnesota by Irving Kessler, Peter Goddard, and three others.{{Cite web |title=Bison Advisors LLC v. Kessler, Civil No. 14-3121(DSD/SER) {{!}} Casetext Search + Citator |url=https://casetext.com/case/bison-advisors-llc-v-irvin-kessler-peter-goddard-walleye-trading-advisors-llc-1 |access-date=September 10, 2024 |website=casetext.com |archive-date=September 3, 2020 |archive-url=https://web.archive.org/web/20200903235314/https://casetext.com/case/bison-advisors-llc-v-irvin-kessler-peter-goddard-walleye-trading-advisors-llc-1 |url-status=live }}{{Cite web |title=Irvin Kessler, Principal / Chairman |url=https://providentrev.com/wp-content/uploads/2020/01/Irvin-Kessler.pdf |website=Provident Real Estate Ventures}}{{Cite news |last=Kumar |first=Devika Krishna |date=March 14, 2024 |title=Hedge Fund Walleye Eliminates a Dozen People in Restructuring |url=https://www.bloomberg.com/news/articles/2024-03-14/hedge-fund-walleye-eliminates-a-dozen-people-in-restructuring |access-date=September 10, 2024 |work=Bloomberg.com |language=en |archive-date=March 22, 2024 |archive-url=https://web.archive.org/web/20240322064049/https://www.bloomberg.com/news/articles/2024-03-14/hedge-fund-walleye-eliminates-a-dozen-people-in-restructuring |url-status=live }} Prior to this Kessler who was an experienced floor trader had founded Deephaven Capital Management.
The founders of Walleye intended for it to perform electronic trading that used data and fast computers to earn profits for its clients.{{Cite web |last=Woodie |first=Alex |date=August 19, 2021 |title=From Wall Street to Main Street: Inside Deephaven's Big Data Journey |url=https://www.datanami.com/2021/08/19/from-wall-street-to-main-street-inside-deephavens-big-data-journey/ |access-date=September 10, 2024 |website=Datanami |archive-date=July 1, 2022 |archive-url=https://web.archive.org/web/20220701234719/https://www.datanami.com/2021/08/19/from-wall-street-to-main-street-inside-deephavens-big-data-journey/ |url-status=live }} Goddard oversaw the development of a system called Deephaven that enabled Walleye analysts to query large amounts of fast-moving data in real time which gave its clients competitive advantage.
According to Walleye's own disclosures, as a trading firm it has been fined multiple times for breach of regulatory rules.
In 2016, Goddard spun out Deephaven Data Labs as its own company to use the Deephaven system to solve data challenges in other ways.
In 2017, Walleye started accepting outside capital and restructured to become a hedge fund. Walleye changed its strategy with aims to shed its Midwestern image and become the best midsize multi-strategy platform. It limited capital managed so it could put more of its risk into its volatility and quant strategies.{{Cite web |last=Saacks |first=Bradley |date=December 18, 2023 |title=How under-the-radar multi-manager hedge funds are balancing their ambitions — and avoiding becoming the next Schonfeld |url=https://www.businessinsider.com/how-multi-strategy-firms-are-balancing-growth-investor-demand-2023-12 |access-date=September 10, 2024 |website=Business Insider |language=en-US |archive-date=August 19, 2024 |archive-url=https://web.archive.org/web/20240819103838/https://www.businessinsider.com/how-multi-strategy-firms-are-balancing-growth-investor-demand-2023-12 |url-status=live }}
In 2023, Walleye launched Dockside Platforms which connects investors to smaller Money Managers that charge lower fees and offer more liquidity and transparency. This was considered a method provide more options and chip away at the bargaining power that larger hedge funds held such as Citadel LLC, Millennium Management, LLC and Point72 Asset Management.{{Cite web |last=Saacks |first=Bradley |date=August 2, 2023 |title=The new platform giving big hedge funds a run for their money |url=https://www.semafor.com/article/08/01/2023/the-new-platform-giving-big-hedge-funds-a-run-for-their-money |website=Semafor |access-date=September 10, 2024 |archive-date=April 16, 2024 |archive-url=https://web.archive.org/web/20240416150200/https://www.semafor.com/article/08/01/2023/the-new-platform-giving-big-hedge-funds-a-run-for-their-money |url-status=live }}
In March 2024, Walleye laid off 12 employees (4% of employees) as part of its restructuring process. In August 2024, Walleye laid off a further 12 employees and closed its office in Houston.{{Cite news |last=Tan |first=Gillian |date=August 5, 2024 |title=Hedge Fund Walleye Dismisses a Dozen Staff, Including Equity Capital Markets Head |url=https://www.bloomberg.com/news/articles/2024-08-05/hedge-fund-walleye-dismisses-a-dozen-staff-including-ecm-head |access-date=September 10, 2024 |work=Bloomberg.com |language=en |archive-date=September 10, 2024 |archive-url=https://web.archive.org/web/20240910130522/https://www.bloomberg.com/news/articles/2024-08-05/hedge-fund-walleye-dismisses-a-dozen-staff-including-ecm-head |url-status=live }} In October 2024, further cuts were made with 8 traders leaving the firm.{{Cite news |last=Shaw |first=William |date=2024-10-29 |title=Walleye Cuts Five Traders Including Global Macro Head Anuraj Dua |url=https://www.bloomberg.com/news/articles/2024-10-29/walleye-cuts-five-traders-including-global-macro-head-anuraj-dua |access-date=2024-11-02 |work=Bloomberg News |language=en}}
References
{{Reflist}}
External links
- {{Official website|http://www.walleyecapital.com}}
{{authority control}}
{{Hedge funds}}
Category:2005 establishments in Minnesota
Category:Alternative investment management companies
Category:American companies established in 2005
Category:Companies based in New York City
Category:Financial services companies based in New York City