Quantitative hedge fund Xantium is preparing to spin out of Paul Tudor Jones' Tudor Investment Corporation in the first half of 2027, with approximately $9bn in investor assets, in what could become the largest hedge fund spinout on record, according to a report by the Financial Times.

The firm, which employs around 300 people, is expected to launch independently with backing from Tudor, although it remains unclear whether its parent company will retain an equity stake. Most of Xantium's existing $9bn in assets comes from external investors, with the remainder provided by Tudor, senior management and employees.

Founded within Tudor in 2019 by former DE Shaw quantitative specialists Oliver Watson and Sergey Levin, Xantium combines systematic trading models with discretionary investment decisions, although computer-driven strategies account for the majority of portfolio risk. The firm trades across equities, commodities, fixed income and foreign exchange through a single multi-asset fund, with operations spanning London, New York, Salt Lake City and Abu Dhabi.

The planned launch would surpass the previous record set by Leda Braga's Systematica Investments, which separated from BlueCrest Capital Management in 2015 with $8.4bn in assets. It would also exceed the $5bn launch of Diego Megia's Taula Capital following his departure from Millennium Management in 2024.

Xantium's move comes amid increasingly challenging conditions for independent hedge fund launches, with rising operational costs and intense competition for investment talent from multistrategy platforms including Citadel and Millennium. However, the firm's established investor base and existing infrastructure could provide a significant advantage as it transitions to independence.