Paloma Partners is reducing headcount by nearly a dozen employees, including senior strategy, marketing, and compliance roles, as the $1.1bn multi-strategy hedge fund continues a broader restructuring under its current leadership, according to a report by Business Insider.

The cuts follow a multi-phase operational overhaul initiated after CEO Ravi Singh took over in 2024, aimed at simplifying the firm’s structure, upgrading technology infrastructure, and streamlining outsourced functions. The changes mark the final stage of a wider transformation effort completed earlier this year.

Among those departing are senior figures in business development, marketing, and compliance, reflecting a shift toward a leaner organisational model. The firm currently employs around 110 staff and operates with more than 20 investment teams.

Paloma, one of the longer-established names in the hedge fund industry, has seen its assets decline in recent years amid investor withdrawals. The firm now manages approximately $1.1bn, according to regulatory filings.

Despite the restructuring, performance has stabilised more recently. After a modest drawdown earlier in the year, the fund has returned close to flat performance through mid-April, following gains of around 8% in the prior year.

The overhaul builds on a broader repositioning effort that included leadership changes in 2024, with Singh and chief operating officer Mike DeAddio tasked with rebuilding the platform and reorienting its investment strategy.

The firm has since reshaped its portfolio of internal and external managers, adding several new teams while pruning underperforming strategies. This includes ongoing exits from earlier allocations such as its investment in Aquatic Capital, a quantitative fund that struggled to meet expectations.

Paloma’s current approach emphasises attracting established portfolio managers and providing them with greater autonomy and economic alignment compared with larger multi-strategy hedge funds. Recent additions include a mix of systematic and discretionary managers spanning equity and trading strategies.

The latest workforce reductions are being framed internally as part of an effort to improve efficiency and support a more focused operating model following the completion of its infrastructure rebuild.